Bitcoin Falls Amid Growing Geopolitical Tensions

Bitcoin fell on Tuesday, extending losses as it led declines among cryptocurrencies due to souring risk sentiment amid increased geopolitical tensions and uncertainty over U.S. interest rates.

Bitcoin also experienced profit-taking after reaching new highs above the coveted $100,000 level last week, with traders locking in gains in most other cryptocurrencies.

The world’s largest cryptocurrency dropped 2.6% to $96,870.6 by 00:38 ET (05:38 GMT).

Global risk appetite was hurt by heightened geopolitical tensions in the Middle East, following the overthrow of President Bashar al-Assad’s government by rebel forces. Wall Street indexes fell on Monday.

Bitcoin, Crypto Contend with Profit-Taking as Trump Cheer Cools

Crypto markets faced a wave of profit-taking as traders anticipated more information on President Donald Trump’s forthcoming crypto policy. Positive cues from Trump’s nomination of pro-crypto candidates for key positions heightened expectations.

However, uncertainty about the level of regulatory support Trump can offer has emerged. Analysts are skeptical about the possibility of a Bitcoin Strategic Reserve under his administration.

Bitcoin has now narrowed into a trading range of $90,000 to $100,000 lately, having briefly hit a record high above $103,000 last week.

Google Quantum Computing Breakthrough Could Present Crypto Risks

Additionally, sentiment toward crypto markets was impacted by Google's announcement of a breakthrough in quantum computing with a next-generation chip, capable of solving extremely complex problems.

Further advancements in quantum computing could jeopardize the cryptographic security measures of cryptocurrencies, potentially rendering the complex processes used to generate crypto tokens trivial.

According to consulting firm Deloitte, around $40 billion worth of Bitcoin may be at risk from quantum attacks.

Crypto Price Today: Altcoins Slide in Tandem with Bitcoin

Broader cryptocurrency prices tumbled on Tuesday, following Bitcoin’s decline.

World's second-largest crypto Ether fell 6.1% to $3,702.02, while XRP, the third-largest token, plummeted nearly 13% to $2.1672, despite recent optimism regarding its ongoing lawsuit against Ripple.

Additional tokens such as Solana, Cardano, and Polygon dropped between 7% and 16%, whereas meme token DOGE slumped 10%.