Cryptocurrencies Slide as Middle East Tensions, Tech Selloff Sap Risk Appetite

Bitcoin and major altcoins dropped sharply this week as escalating geopolitical tensions in the Middle East and a steep decline in U.S. technology stocks triggered a flight from risk assets.

Bitcoin traded at $81,245 on global data platform CoinMarketCap as of 8 a.m. on October 23, down 3.76% from 24 hours earlier, according to Businesskorea. The decline was its steepest in more than a month. On South Korean exchange Bithumb, Bitcoin fell 0.56% over the same period to the equivalent of roughly $82,417.

Other cryptocurrencies followed lower. Ethereum dropped 4.12%, XRP fell 4.77%, and Solana lost 3.90%, Businesskorea reported.

Nasdaq data showed Bitcoin at $81,263.73 as of early evening on October 22, down 3.29%, with Ethereum sliding 3.64% to $2,381.38 and Solana falling 3.27% to $103.31.

Benzinga reported that leading cryptocurrencies plunged on Thursday, October 22, as reports of renewed hostilities between the U.S. and Iran spooked investors.

**Geopolitics and Tech Losses Fuel the Rout**

The selloff coincided with a sharp decline in the Nasdaq Composite, which fell 694.00 points, or 2.60%, on October 22 — its steepest single-day drop since early June, Businesskorea noted. Meta shares slumped roughly 7% despite better-than-expected earnings, driven by concerns over the company’s AI-related spending and cash flow.

“The cryptocurrency selloff was driven by risk aversion spreading from equity markets into digital assets,” Lorris Beziers, senior DeFi analyst at Tesseract Group, told Businesskorea.

Rising oil prices added pressure. December Brent crude futures settled at $113.17 per barrel, up 4% and the highest since May, according to Businesskorea. Reports that the United States and Israel were considering resuming military operations against Iran, alongside intensified attacks by Yemen’s Houthi rebels, pushed demand toward safe-haven U.S. Treasuries, sending the 10-year yield down 19.3 basis points to 4.952% — its largest daily decline in three years and seven months.

**Mixed Institutional Flow Signals**

Fund flows into U.S. spot Bitcoin exchange-traded funds (ETFs) showed a mixed picture. Businesskorea reported that spot Bitcoin ETFs attracted $1.1 billion in net inflows this week, reversing two consecutive weeks of net outflows.

Yet daily data pointed to weakening demand. IndiaTimes reported that U.S. spot Bitcoin ETFs recorded approximately $636 million in net outflows on Thursday, while Ether ETFs saw roughly $111 million leave the products. Riya Sehgal, research analyst at Delta Exchange, told IndiaTimes the pullback was driven by “a combination of macro uncertainty, weakening institutional flows and leveraged positioning.”

Nischal Shetty, founder of WazirX, told IndiaTimes that crypto markets experienced an uneven week, with an initial recovery giving way to renewed selling pressure. “The pullback coincided with weakness in US equities,” he said. Bitcoin traded near $83,460 on October 22 before slipping to approximately $81,198, while Ethereum weakened from around $2,452 to $2,388, falling below the psychological $2,400 level.

**Longer-Term Views and Market Sentiment**

Despite the correction, some market participants remained optimistic. Pratik Kala, portfolio manager at Apollo Crypto, told Businesskorea that Bitcoin had demonstrated notable resilience despite macroeconomic shocks and that its next major move would likely be upward.

JPMorgan Asset Management, in a report cited by Businesskorea, projected an annualized return of 10% for Bitcoin over the next 10 to 15 years, compared with 7.5% for U.S. large-cap equities and 5.5% for gold. However, Businesskorea noted that Bitcoin’s volatility, estimated at three times that of gold, remains a significant risk.

Market sentiment readings were mixed. CoinMarketCap’s Fear and Greed Index stood at 48, indicating neutral sentiment and down sharply from 78 (greed) last month, while Cryprice’s index registered 68 (greed), Businesskorea reported. The so-called Kimchi Premium on South Korean exchanges remained at around 1%.

Global crypto market capitalisation fell 0.8% to $2.80 trillion, according to IndiaTimes.

**Outlook**

Investor attention is now turning to the Federal Open Market Committee meeting scheduled for October 27–28, Businesskorea reported. Analysts cited by IndiaTimes said energy prices and ETF flows would remain key factors. Persistently elevated oil prices could complicate inflation expectations and weigh on hopes for monetary easing.