Investing.com — Bitcoin fell on Tuesday, extending losses, as risk sentiment worsened amid rising geopolitical tensions and uncertainty over U.S. interest rates. The headline was a decline.
Bitcoin was also exposed to heavy profit-taking last week after hitting a new all-time high above the coveted $100,000 level. Traders were also seen taking profits in most other cryptocurrencies.
By 12:38 a.m. ET (5:38 p.m. Japan time), shares were down 2.6% to $96,870.6.
Rising geopolitical tensions in the Middle East reduced global risk appetite after rebels overthrew the government of President Bashar al-Assad. Wall Street indexes fell on Monday.
As President Trump's support wanes, Bitcoin and virtual currencies engage in a battle to lock in profits.
Cryptocurrency markets have been hit by a wave of profit-taking as traders wait for further clues about what President-elect Donald Trump's crypto policy plans will be.
Traders are taking positive cues from the president-elect's nominations of several pro-crypto candidates to key cabinet and regulatory positions, most notably Gary Gensler as chairman of the Securities and Exchange Commission. Paul Atkins was appointed as his successor.
But markets are now waiting for more concrete cues on policy with President Trump set to take office in just over a month. The president-elect had promised to make the United States the “crypto capital” of the world.
But recent meetings raised questions about how much regulatory support President Trump could provide. Analysts have largely dismissed the outlook for the Bitcoin Strategic Reserve under the Trump administration.
Bitcoin has also fallen into the $90,000 to $100,000 trading range in recent weeks, only briefly hitting an all-time high above $103,000 last week.
Google's quantum computing breakthrough could pose cryptocurrency risks
Cryptocurrency market sentiment was also shaken by Google (NASDAQ:) announcing a breakthrough in quantum computing with its next-generation chip that will enable solving extremely complex problems. Ta.
Further advances in quantum computing could undermine the cryptographic security measures of cryptography, given that they are likely to simplify the complex processes required to generate cryptographic tokens.
Consulting firm Deloitte said in a study that at least $40 billion worth of Bitcoin could be vulnerable to quantum attacks.
Cryptocurrency prices today: Altcoins fall in tandem with Bitcoin
On Tuesday, a wide range of cryptocurrency prices fell sharply, following Bitcoin's losses.
The world's second-largest cryptocurrency fell 6.1% to $3,702.02. The world's third-largest token fell nearly 13% to $2.1672. XRP has been one of the best-performing stocks in recent sessions on expectations that the SEC will drop its long-running lawsuit against the issuer.
which fell between 7% and 16%, and among meme tokens, DOGE fell by 10%.
