The world’s largest cryptocurrency last traded 1.5% lower at $75,730.5
Bitcoin dropped below $76,000 levels on Wednesday as renewed geopolitical tensions in the Middle East and heavy exchange-traded fund outflows pressured cryptocurrencies, even as technology stocks rallied across Asia and U.S.
The world’s largest cryptocurrency last traded 1.5% lower at $75,730.5 by 06:33 GMT.
Market sentiment weakened amid renewed uncertainty surrounding a potential Iran peace agreement after new U.S. strikes on Iran earlier this week.
Iran called the strikes a violation of the ceasefire, while U.S. officials described them as defensive actions.
Reports pointed to a reported $1.3 billion block sale of shares in BlackRock’s iShares Bitcoin Trust ETF, known as IBIT, executed on a dark pool trading venue, which coincided with Bitcoin’s latest sharp decline.
Spot Bitcoin ETFs have also seen persistent outflows in recent sessions, with investors turning cautious after weeks of volatile trading and rising geopolitical risks.
The weakness in cryptocurrencies contrasted with broader equity markets. The tech-heavy Nasdaq and S&P 500 closed at record highs overnight as investors bet artificial intelligence demand would remain resilient.
Asian technology shares also rose on optimism surrounding AI-linked stocks.
Attention is now also turning to the release of the U.S. personal consumption expenditures (PCE) price index data on Thursday, the central bank’s preferred inflation gauge.
Interest rate futures currently imply only limited chances of a rate cut this year, while traders have even begun pricing in a modest possibility of another central bank rate hike if inflation remains stubbornly elevated and oil prices rise further because of Middle East tensions.
Higher interest rates tend to weigh on cryptocurrencies by reducing liquidity and making safer yield-bearing assets more attractive relative to speculative investments.
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