Bitcoin slips 1.2% to $27,000 as investors weigh risk assets

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Bitcoin slips 1.2% to $27,000 as investors weigh risk assets

Bitcoin slipped 1.2% to trade at just over $27,000 during the Asian afternoon hours on Wednesday as worsening scenarios in the Hamas-Israel conflict shattered investor confidence in riskier assets.

Investors earlier this week said prices would move lower as investors shy away from traditional equities and risk assets in favor of gold and oil, whose prices have surged as much as 6% in the past week.

In the past 24 hours, the cryptocurrency markets have fallen more than 1.6%, the CoinDesk Market Index, a broad-based index for tracking hundreds of tokens. Ether fell 2.6 percent to increase weekly losses to more than 5%, while XRP tokens led a decline in alternative currencies with a decrease of 3%.

Other major tokens, Polkadot's DOT and Polygon's MATIC slumped 3%, while Tezos's XTZ dropped 8%. The RNDR was the only gainer among large-cap tokens, with a 3% gain in the past 24 hours.

FxPro market analysts said bitcoin's attempt to break the $28,000 level last week triggered a 'wave of selling that took the price back to $27,000,' with the profit taking suggesting investors were not keeping their money held up in risky bets just yet.

FxPro said Tuesday's gains in U.S. stocks were due in part to Tuesday's gains in the stock market. The US defaulted debt markets, rather than moving money from one asset to another.