Bitcoin fell below $66,000 on Tuesday, shedding more than $4,500 in its biggest single-day rout since early February. The sell-off came as the US and Iran launched new strikes, reigniting fears of a wider conflict in the Middle East.
The Tuesday sell-off
The drop was swift. By late afternoon, bitcoin had erased gains from the previous week, sliding under $66,000 for the first time in days. The roughly 6.5% decline was the steepest percentage loss since February 5, according to data tracked by the reporting desk. Trading volumes spiked as panic selling hit order books on major exchanges.
Geopolitical trigger
News of the fresh strikes between the US and Iran broke overnight, sending risk assets lower across the board. Equities and oil also moved, but crypto — often touted as a hedge — took the hardest hit in percentage terms. The reaction underscores how sensitive digital assets remain to sudden geopolitical shocks, especially those involving major energy-producing regions.
What traders are watching
The timing isn't great for bulls. Bitcoin had been struggling to hold the $70,000 level in recent weeks, and Tuesday's move pushed it decisively below a key psychological floor. The question now is whether the selling is a one-day event or the start of a deeper correction. No further strikes have been reported since the initial exchange, but the situation remains fluid.
Traders will be watching for any diplomatic signals — or the lack of them — in the coming hours. For now, the market is bracing for more volatility.
