Bitcoin suffered its largest single-day drop since early February on Tuesday, shedding over $4,500 and falling below the $66,000 mark. The decline coincided with renewed military strikes between the United States and Iran, triggering a flight from risk assets across global markets.
The cryptocurrency's price slump came as geopolitical tensions escalated, with reports of new attacks in the region. Bitcoin, often viewed as a high-beta asset, tends to sell off during periods of uncertainty. The sell-off wiped billions from its market capitalization, breaching the key support levels of $68,000 and $66,000 in rapid succession.
While the short-term outlook has turned cautious, on-chain data suggests long-term holders are not exiting en masse. The market appears to be absorbing the immediate shock, with traders watching for any further escalation in the US-Iran conflict.