Bitcoin Drops 1.7% to $107.6K Amid US Iran Tensions

Bitcoin's price experienced a notable decline, falling 1.7% to $107.6K, as investors reacted to escalating geopolitical tensions between the US and Iran. This drop came amidst a broader market reaction to rising uncertainty, with crude oil prices spiking over 4% following warnings from President Trump and retaliatory statements from Iran. The geopolitical tensions have created a ripple effect across various markets, with Bitcoin and other cryptocurrencies feeling the impact.

The market shift reflects a classic risk-off reaction, as investors sought refuge in traditional hedges like oil while trimming exposure to volatile digital assets. Over the past 24 hours, Bitcoin experienced a sharp pullback to the daily low of $107,407.29. With the 20-day exponential moving average (EMA) around $106.3K acting as the immediate support zone, and a deeper floor forming near the 50-day EMA at $102K, traders should brace for further downward pressure. Should Bitcoin break below the $106.3K support level, eyes will turn to the 50-day EMA at $102K as a potential rebound point.

Brent crude futures spiked by $2.90, or 4.3%, closing at $69.77 a barrel. US West Texas Intermediate (WTI) crude rose $3.17, or 4.9%, settling at $68.15, a price surge driven largely by geopolitical anxiety rather than fundamentals. The surge in oil prices comes as the US government ordered the evacuation of non-essential personnel from its embassy in Baghdad, citing increased regional risks. Although Iraqi officials downplayed immediate threats, the move signaled a serious shift in US posture.

Adding to the uncertainty, President Donald Trump publicly expressed waning confidence in the ongoing nuclear negotiations with Iran. Speaking to the New York Post and reiterating on the Pod Force One podcast, Trump said, “I’m much less confident of a deal being made. Something happened to them.” He emphasized that while war is not the desired outcome, he would not allow Iran to develop a nuclear weapon.

Iran’s military rhetoric intensified in response. Defense Minister Brigadier General Aziz Nasirzadeh issued a stern warning, stating that all US military bases in the region are within striking range of Iranian forces. “If a conflict is imposed on us … we will boldly target them in host countries,” Nasirzadeh said, hinting at preemptive capabilities. Iran also unveiled a new ballistic missile test involving a 2,000 kg warhead. Despite public declarations by Iranian officials, including President Masoud Pezeshkian and Foreign Minister Abbas Araghchi, that Iran does not seek nuclear weapons, Western skepticism remains high.

Geopolitical tensions escalated further as Israel signaled its preparedness to launch a military operation targeting Iran’s nuclear program. In response, the US reportedly issued a warning for Americans to leave Iraq, citing “heightened regional tensions.” This escalation in tensions led to a decline in Bitcoin’s value, with the cryptocurrency dropping by nearly 2% over the past 24 hours. Oil prices also climbed to a two-month high following President Trump's announcement of U.S. personnel being moved from the Middle East, fueling concerns about potential conflict. The safe-haven demand increased amid rising tensions, leading to a depreciation in the USD/CHF exchange rate.