SINGAPORE - Cryptocurrencies fell heavily and Bitcoin broke below US$60,000 on April 19 in a rush out of risky assets following reports of an Israeli missile strike on Iran.

Bitcoin slid more than 5.5 per cent to US$59,961 in Asia trading as the US dollar rose broadly. Ether fell by a similar margin, dropping below the US$3,000 mark to US$2,895.

Israeli missiles hit a site in Iran, ABC News reported, citing a US official, days after Iran launched a drone strike on Israel.

Iran’s Fars news agency said an explosion was heard at the airport in the Iranian city of Isfahan.

The unconfirmed reports triggered a flight to traditional havens such as bonds, gold and the dollar. Speculative investments including stocks and virtual currencies endured deepening losses.

Markets in Asia had been braced for an Israeli response to an earlier Iranian drone and missile attack and attuned to the danger of a tit-for-tat escalation. The geopolitical concerns are overshadowing the Bitcoin halving expected later on April 19, which will curb new supply of the token.

Halvings historically bolstered the price of the largest digital asset. This time around, Bitcoin hit a record in mid-March before the event, leading to questions about whether the putative impact has already been discounted by traders.

Ongoing Israel-Iran violence could lead to a “general risk-off sentiment across crypto”, said Mr Stefan von Haenisch, head of trading at OSL SG.

But it might take a “significant move lower” to undo all of the bullishness around the halving, he added.

JPMorgan Chase and Co and Deutsche Bank strategists have said that the quadrennial halving is largely already priced in by investors. BLOOMBERG, REUTERS