Bitcoin Falls as Traders Take Profits — Market Talk

Bitcoin falls modestly as investors take profits after the cryptocurrency reached a five-week high in the previous session. Tuesday's gains were driven by renewed institutional demand, regulatory optimism and investors being forced to close earlier bets against bitcoin as the cryptocurrency strengthened, Zaye Capital Markets analyst Naeem Aslam says in a note. However, the escalating U.S.-Iran conflict create uncertainty for bitcoin prices, he says. "Bitcoin may benefit from demand for assets operating outside conventional financial channels, but during sudden geopolitical shocks it often behaves like a high-risk technology investment, leaving it vulnerable to rapid selling when investors reduce exposure." Bitcoin falls 0.8% to $65,870 after reaching a high of $66,919 Tuesday, LSEG data show.([email protected])