Bitcoin experienced its largest single-day drop since early February on Tuesday, shedding more than $4,500 and falling below the $66,000 mark. The sell-off came amid renewed military strikes between the United States and Iran, sharply escalating geopolitical tensions and triggering a broad risk-off sentiment across global markets.
This marked the deepest daily correction so far this year. As Middle East tensions flared, investors rushed to dump risk assets, with the crypto market bearing the brunt. Bitcoin, often classified as a "risk-on" asset, tends to suffer heavy selling during periods of panic, amplifying the decline.
As of press time, bitcoin had slightly recovered but remained below $66,000. Traders are closely monitoring further developments in the region and their potential ripple effects. However, historical patterns suggest that bitcoin often bounces back from such event-driven drops, with the $60,000 level seen as a critical support zone.