Bitcoin fell around 5% on Wednesday, slipping below the $60,000 threshold as selling pressure deepened across cryptocurrency markets amid a broader pullback in risk assets.

The largest cryptocurrency was trading at $59,460 at 1740GMT, after hovering near $60,000 during the Iran war. Live market data also showed Bitcoin near $59,374, down about 5% on the day, while Ethereum traded around $1,570 after a similar daily decline.

The total value of the global cryptocurrency market, including Bitcoin, declined 4% in the last 24 hours to $2.06 trillion, according to CoinMarketCap data.

Bitcoin’s market capitalization dropped 5% in the last 24 hours to $1.19 trillion, while daily trading volume surged 17.4% to $35.5 billion, signaling intensified selling and higher short-term volatility.

The latest decline came as investors reduced exposure to speculative assets following renewed pressure on technology and artificial intelligence-linked stocks, while uncertainty about the US Federal Reserve’s policy path continued to weigh on liquidity-sensitive markets.

Although the interim US-Iran peace agreement helped ease concerns about energy supplies and inflation risks, crypto assets failed to benefit from the improvement in geopolitical sentiment as investors prioritized cash and lower-risk positions.

Bitcoin’s monthly loss widened to 22.4% as of Wednesday. The cryptocurrency has also erased its year-to-date gains, declining 32% this year.

Ethereum, the second-largest cryptocurrency by market value, fell 5.4% to $1,567, while most major altcoins also traded lower as the selloff spread across the digital asset market. (AA)

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