The renewed escalation of conflict in the Middle East has weighed on broader market sentiment, with Bitcoin falling to its lowest level since the outbreak of the conflict in Iran. In early trading on Thursday, Bitcoin fell more than 5.5% to below $62,000, its lowest level since February 6. The decline extends this week's losses, which began with Michael Saylor's Strategy Inc. After selling approximately $2.5 million in Bitcoin holdings.
Josh Du, chief investment officer of Animoca Brands, said that the price of Bitcoin fell this week because Strategy broke its "never sell" promise, thus shaking market confidence.
The sell-off highlights the divergence between Bitcoin and technology stocks - while Bitcoin prices have retreated, technology stocks have hit record highs. Bitcoin remains vulnerable to macro risks, with its price falling further after overnight attacks threatened U.S.-Iran talks on an interim peace deal. Asian and U.S. stock futures fell along with Bitcoin in early trading on Thursday.