- Bitcoin prices fell below $100,000 over the weekend due to increased tension between Iran and Israel.
- The drop reached a low of about $98,400 before recovering above $100,000.
- Analysts link the decline to wider market caution as geopolitical risks rose, especially due to U.S. airstrikes in Iran.
- Experts warn that disruption in the Strait of Hormuz could impact global oil supply and contribute to inflation.
- While Bitcoin is sometimes viewed as a hedge, many investors still see it as a high-risk asset during crises.
Bitcoin prices sank below $100,000 this weekend as international markets reacted to the escalating conflict between Iran and Israel. The world’s largest digital currency hit a low of $98,400 on Sunday, June 22, according to Coinbase data from TradingView. Days earlier, on Friday, June 20, Bitcoin had traded above $105,000.
Jacob Joseph, Senior Research Analyst at CoinDesk Data, said by email, “This movement has coincided with escalating geopolitical tensions involving the U.S., Israel, and Iran.” He added that “Investor sentiment appears to have become more cautious amid uncertainty over potential U.S. involvement in the Israel-Iran conflict, which has likely contributed to the broader retreat seen in risk assets.”
Marc P. Bernegger, cofounder of AltAlpha Digital, agreed, stating that tensions in the Middle East were a key factor behind market uncertainty. “Tensions between Israel and Iran may have prompted capital flight from risk assets like Bitcoin, pushing prices below the $100,000 psychological support level,” Bernegger said in an emailed statement.
According to James Maxfield, head of trading for Gemini EU, major losses in both Bitcoin and Ethereum followed U.S. airstrikes on Iranian nuclear facilities over the weekend. “This followed U.S. airstrikes on Iranian nuclear facilities, which triggered a sharp selloff across crypto markets,” Maxfield explained. He noted the downturn intensified after President Trump confirmed the strikes and warned about possible further military action.
Some analysts raised concerns about how the conflict in the Middle East might affect the worldwide energy market. Dom Kwok, cofounder and COO of EasyA, discussed the risk of Iran closing the Strait of Hormuz, a key channel where about 20% of global oil flows. Last year, an average of 20 million barrels per day moved through this strait, which equals roughly one-fifth of global petroleum consumption, based on an analysis by the U.S. Energy Information Administration.
If the strait shuts down, options for moving oil out of the region are very limited, making it what the EIA calls “one of the world’s most important oil chokepoints.” “If disrupted, oil prices could spike, driving inflation higher,” Kwok said. He explained this would likely prompt investors to move money from high-risk assets to traditionally safer ones like cash or Gold.
Kwok also noted the current drop is not limited to the crypto market. “This isn’t a crypto-specific reaction. It’s a classic flight-to-safety move,” he said. While some view Bitcoin as a hedge, most institutions still list it as a high-risk option. “Fortunately, these shocks are often short-lived,” he added, pointing out that Bitcoin has already rebounded above $100,000, suggesting previous events show such downturns can provide future buying opportunities.
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