Bitcoin prices retreated on Tuesday as fresh US military strikes on Iran sparked renewed risk aversion across global markets.
The digital asset joined a broad-based decline in US technology equities, reflecting investor anxiety over geopolitical instability and its potential impact on Federal Reserve policy expectations.
The pullback marks a reversal of recent momentum for the cryptocurrency.
Bitcoin had previously erased earlier session losses to turn positive, buoyed by US President Donald Trump’s public reaffirmation of support for the crypto sector.
However, the fresh escalation in the Middle East quickly overshadowed those political tailwinds, dragging the asset lower alongside other risk-sensitive instruments.
The current decline follows a period of significant volatility for the world’s largest cryptocurrency.