Bitcoin falls below $65,000 after Fed meeting as Middle East tensions escalate

Cryptocurrency markets fell sharply on 31 July following the conclusion of the Federal Reserve's July meeting as tensions in the Middle East mounted. The Iranian leadership reportedly ordered retaliatory attacks against Israel, heightening the risk of a wider conflict in the region. The price of Bitcoin (BTC) fell to $64,500 from $66,500 after Fed Chairman Jerome Powell's press conference, dropping more than 2 per cent in 24 hours. Other major cryptocurrencies such as ethereum (ETH), solana (SOL), avalanche (AVAX), and caldano (ADA) were also broadly down, while ripple (XRP) held on to some of its gains from earlier today. The market-wide cryptocurrency benchmark index, the CoinDesk 20, is down 0.8 per cent.

On the traditional asset side, most assets appreciated on the day. U.S. 10-year bond yields fell 10 basis points, the price of gold rose 1.5 per cent to $2,450, near an all-time high, while the price of WTI crude oil rose 5 per cent. On the stock market, the Nasdaq 100 gained 3 per cent and the SP 500 closed up 2.2 per cent, led by chip-making giant Nvidia (NVDA), which was up 12 per cent.