According to CoinDesk, Bitcoin and other cryptocurrencies fell sharply during the U.S. trading session on Tuesday as tensions in the Middle East escalated. Bitcoin climbed to about $64,000 during the European session, but then quickly fell to $62,500. As of press time, Bitcoin fell about 2% in 24 hours to $62,700.

The CoinDesk 20 index fell by a similar amount over the same period, with Ethereum and Solana performing slightly better than average, while Polkadot, Uniswap, Polygon and Hedera performed slightly worse. Major U.S. stock indexes opened lower, with the S&P 500 and Nasdaq falling 1.2% and 2%, respectively. Gold rose 1.2% to $2,690 an ounce, close to its all-time high of $2,700 set last week, while WTI crude oil rose 3% to $70 a barrel.

The divergence in price action between gold and bitcoin highlights bitcoin's high correlation with risk assets like stocks, while gold continues to serve as a safe haven. K33 Research noted in a report on Tuesday that bitcoin's 30-day rolling correlation with the S&P 500 is near a yearly high of 0.62. Bitcoin's drop on Tuesday was also reminiscent of price action during the early days of unrest in the Middle East last year, as well as similar situations in April and July this year, when crypto assets fell rapidly on news from the region.