Bitcoin, followed by other cryptocurrencies, fell sharply on Tuesday due to investor concerns about the global economy and a drop in market liquidity over the summer. Bitcoin price fell 3% to $64,680, its lowest level since May 16, according to CNBC. Earlier in the day, quotes fell to $64,347. Other popular cryptocurrencies, including Ethereum, XRP, and Solana, lost 4% to 7% of their value.

Analysts attribute this sharp decline to investors’ fear of a global economic slowdown amid high inflation and geopolitical tensions. In addition, activity in financial markets traditionally decreases in the summer due to the holidays of traders and investors.

“During periods of economic uncertainty, investors either sell assets to minimize losses or exit risky positions while waiting for the situation to improve.” – says Marko Jurina, CEO of decentralized cryptocurrency exchange Jumper.Exchange. “We’re probably seeing a combination of these scenarios right now.” added.

Bitcoin’s decline comes amid declines in other risky assets. Notably, the tech index Nasdaq fell 0.1% and the S&P 500 stock index traded virtually unchanged. Shares of Coinbase fell 3% and shares of MicroStrategy fell 1%.

It is also worth noting that Bitcoin has tried to break the $70,000 barrier several times in recent months but failed. The peak value was recorded on March 14 at $73,797. And since the beginning of June, the cryptocurrency has lost 9% of its value.

According to the analytical company CryptoQuant, it is not worth expecting significant growth in the leading cryptocurrency in the near future, as investors have been actively recording profits since the end of May and are in no hurry to return to the market. Most analysts believe the market will remain volatile in the near future due to macroeconomic risks.