Bitcoin fell more than 3% to trade around $61,691 on Wednesday, extending a period of volatility driven by escalating geopolitical tensions between the United States and Iran.
The sharp decline followed remarks from US President Donald Trump that raised fresh concerns about potential military escalation, prompting investors to flee riskier assets.
This move eclipsed what had been a muted market reaction to MicroStrategy’s latest sale of the token earlier in the week, signaling that geopolitical risk is currently the dominant driver for digital asset pricing.
The cryptocurrency’s retreat marks a continuation of the risk-off sentiment that emerged on Tuesday, when Bitcoin prices dropped alongside a broad-based decline in US technology equities.
That initial sell-off was triggered by reports of fresh US military strikes on Iran, which sparked immediate risk aversion across global markets.
The correlation between traditional tech stocks and digital assets remains high during periods of geopolitical stress, as liquidity is pulled from speculative positions to fund safer havens.