even as tech stocks rose on Wall Street and in Asia.

The world's largest cryptocurrency was last trading 1.7% lower at $75,820.4 as of 3:47 PM.

Market sentiment weakened amid renewed uncertainty surrounding a potential peace deal with Iran following recent US military strikes on Iranian targets earlier this week.

Iran called the strikes a ceasefire violation, while US officials characterized them as defensive actions.

Sentiment was further dampened by reports of Israeli strikes in southern Lebanon, fueling fears of a wider regional conflict.

Cryptocurrencies Under Pressure from Continued Institutional Selling

Reports indicated a $1.3 billion block sale of BlackRock's iShares Bitcoin Trust ETF, known as IBIT, on an unregulated trading platform, coinciding with Bitcoin's latest sharp decline.

Spot Bitcoin ETFs have also seen steady outflows in recent sessions, as investors are cautious after weeks of volatile trading and rising geopolitical risks.

The weakness in cryptocurrencies contrasted with broader stock markets. The tech-heavy Nasdaq and S&P 500 closed at record highs overnight, as investors bet on continued demand for artificial intelligence.

Asian tech stocks also rose amid optimism about AI-related stocks. Attention now turns to Thursday's release of the US Personal Consumption Price Index (PCE) data, the Federal Reserve's preferred inflation indicator.

Interest rate futures currently suggest only a limited chance of a rate cut this year, while traders have even begun to price in a small chance of another Fed rate hike if inflation remains stubbornly high and oil prices rise further due to tensions in the Middle East.

Higher interest rates tend to put pressure on cryptocurrencies, reducing liquidity and making safer, income-producing assets more attractive than speculative investments.