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Cryptocurrencies were under pressure Wednesday, after bitcoin slid back to $60,000 to kick off what is generally one among its strongest months.
The flagship crypto was last off by greater than 1% at $60,767.64, in line with Coin Metrics. Earlier it briefly dipped as little as $59,983.64. Ether last traded lower by 5% at $2,367.11.
Crypto exchange Coinbase hovered under the flat line while bitcoin proxy MicroStrategy gained greater than 1%.
Crypto assets tumble to begin October and the fourth quarter
Rising tensions within the Middle East dampened investors’ risk appetite as the brand new trading month and quarter began. On Tuesday, Iran launched a ballistic missile attack on Israel in retaliation for its recent killing of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon.
“Surging unrest across the Middle East has propelled oil prices upward and reinforced the dollar’s strength, casting a shadow over bitcoin and other speculative investments,” said Chris Kline, chief operating officer and co-founder of Bitcoin IRA.
“In stark contrast to September’s stronger-than-expected performance for bitcoin, October looms as a possible rollercoaster, influenced by the delayed ripple effects of last spring’s halving event and the approach of a divisive American electoral contest,” he added. “Meanwhile, a world monetary tug-of-war is unfolding as various central banks slash rates of interest and expand their money supplies.”
Moreover, investors are monitoring a strike by members of the International Longshoremen’s Association on the East and Gulf Coasts that might affect the U.S. economy depending on how long it lasts.
October and November are historically the strongest months of the 12 months of the 12 months for bitcoin. It has finished this month higher in all but two years since 2013, averaging a return of nearly 23%. It has turn into known to crypto native investors as “Uptober.”
Bitcoin has struggled to interrupt its ceiling of $70,000, though the $55,000 threshold has provided strong support for the crypto asset. Some investors are doubtful that October can be the month it finally comes back to life, but most remain optimistic that the cryptocurrency will test recent highs in the brand new quarter.
