Crypto stocks dropped in morning trading. Gemini Space Station fell 16%; BitMine Immersion Technologies fell 6%; Strategy and SharpLink Gaming fell 5%; Riot Platforms and Coinbase fell 4%; Bullish and Cipher Mining fell 3%; MARA Holdings, IREN, and Robinhood fell 2%.

Bitcoin retreated from a six-week high after a broader risk-off move swept across global financial markets amid growing concern of an escalation in the conflict in the Middle East.

The largest cryptocurrency dropped as much as 3.6% on Wednesday to around $71,900 in New York. Earlier this week, Bitcoin climbed to nearly $76,000 - its highest level since the start of February. Smaller, more volatile tokens also declined, with Ether and Solana each falling around 5%.

The pullback also reflects a familiar pattern seen in recent weeks, where rallies above $70,000 have struggled to gain traction. Short-term holders continue to exhaust each rally at those levels, absorbing momentum before any breakout can develop, according to blockchain data firm Glassnode.

Bitcoin is down about 40% from an all-time high of around $126,000 reached in early October. Demand has ebbed amid a combination of a shifting US monetary policy outlook, geopolitical instability and a reversal in institutional demand.