As tensions in the Middle East escalate, Bitcoin falls back to $60,000.

On Tuesday night, cryptocurrencies experienced a decline, falling back to the $60,000 level after a rocky beginning to what is typically a strong month for them.

Bitcoin, the leading cryptocurrency, experienced a 4% decline to $60,972.62, according to Coin Metrics. At approximately 4:45 p.m. Eastern time, the price of bitcoin dropped to a low of $60,175. Bitcoin's last trade was at $2,449.83, representing a more than 5% decline.

The stock prices of virtual currency-related companies fell in extended trading, with the crypto exchange dropping about 1% and the bitcoin proxy losing 2%.

The recent launch of a ballistic missile attack by Iran on Israel has dampened investors' risk appetite in the Middle East.

The increase in unrest in the Middle East has led to an increase in oil prices and strengthened the dollar, negatively impacting bitcoin and other speculative investments, according to Chris Kline, the chief operating officer and co-founder of Bitcoin IRA.

"While September's bitcoin performance was stronger than expected, October may bring volatility due to the delayed impact of the halving event and the upcoming American election. Additionally, a global monetary tug-of-war is taking place as central banks lower interest rates and increase their money supplies."

The strike by members of the International Longshoremen's Association on the East and Gulf Coasts could impact the U.S. economy if it continues.

Since 2013, October and November have been the strongest months of the year for bitcoin, with it finishing this month higher in all but two years, averaging a return of nearly 23%. This period is now known to crypto native investors as "Uptober."

Despite its inability to surpass $70,000, Bitcoin has found support at $55,000. While some investors are skeptical about October being the month it finally recovers, most remain hopeful that it will set new highs in the upcoming quarter.