The cryptocurrency market experienced a significant decline on Tuesday evening, with Bitcoin falling to the $60,000 level. The drop comes at the start of what has historically been one of the strongest months for the leading digital currency.

As of late Tuesday, bitcoin was trading at $60,972.62, down about 4 percent, according to CoinMetrix. The flagship cryptocurrency briefly fell to $60,175 at 4:45 p.m. ET. Ethereum, the second-largest cryptocurrency by market capitalization, also felt the pressure, falling more than 5% to $2,449.83.

The effects of the downturn were felt outside the cryptosphere, with stocks related to digital currencies also taking a hit in extended trading. Coinbase, a leading cryptocurrency exchange, saw its stock drop about 1%, while MicroStrategy, often considered a Bitcoin proxy, fell as much as 2% after hours.

Chris Kline, chief operating officer and co-founder of Bitcoin IRA, attributed the market’s weakness to geopolitical factors. “Increasing unrest in the Middle East has pushed oil prices higher and strengthened the dollar, which has overshadowed bitcoin and other speculative investments,” Kline said.

The decline coincides with rising tensions in the Middle East following Iran’s ballistic missile attack on Israel in response to recent events in Lebanon. This geopolitical uncertainty has reduced the risk appetite of investors across various asset classes.

Despite October’s reputation as “Uptober” in the crypto community due to its historically strong performance, some investors are questioning whether the trend will hold true this year. Bitcoin has struggled to break the $70,000 barrier, although it has found strong support at the $55,000 level.

Adding to market challenges, investors are also monitoring a strike by members of the International Longshoremen’s Association on the East and Gulf coasts, which could potentially affect the U.S. economy depending on its duration.