Bitcoin Plummets 2.8% to $103,053 Amid Middle East Tensions

Geopolitical tensions in the Middle East have once again shaken the crypto markets. Bitcoin sharply dropped below the psychological level of $105,000 after Tel Aviv claimed a series of attacks against Iran. In just 90 minutes, Bitcoin lost nearly $3,000, sliding from $106,042 to $103,053. This 2.8% drop crushed hopes of a quick surpassing of the $111,940 record set last May. Massive liquidations reveal investors’ surprise: $427.84 million in long positions were wiped out in 24 hours.

The explosions that shook Tehran on Thursday at 10:50 PM UTC immediately triggered a wave of selling on the crypto markets. Israel quickly claimed responsibility for these airstrikes, targeting, according to Benjamin Netanyahu, Iran’s nuclear program. This military escalation caught optimistic traders off guard who were betting on a continued rise towards new all-time highs. The reaction was particularly brutal. In just 90 minutes, Bitcoin lost nearly $3,000, sliding from $106,042 to $103,053. This 2.8% drop crushed hopes of a quick surpassing of the $111,940 record set last May. Massive liquidations reveal investors’ surprise: $427.84 million in long positions were wiped out in 24 hours.

The contrast is striking with traditional safe-haven assets. Gold gained 1.44% while crude oil soared 11%, fully benefiting from fears of regional destabilization. This divergence raises questions about Bitcoin’s real status as a store of value in times of geopolitical crisis. The repercussions are not limited to prices. Indeed, Ayatollah Ali Khamenei promised “severe punishment” to Israel, suggesting further tensions ahead. Iran has already retaliated by launching more than 100 drones, fueling a worrying escalation cycle for the stability of global financial markets.

Paradoxically, this drop does not discourage key figures in the Bitcoin ecosystem. Anthony Pompliano reminds that this reaction is “exactly what happened” during previous tensions in October, when Iran launched hundreds of rockets at Israel. At the time, Bitcoin initially dropped 3% before outperforming gold and oil within the next 48 hours. This historical analysis fuels optimism among long-term investors. Samson Mow, founder of Jan3, directly urged Ryan Cohen, CEO of GameStop, encouraging him to “buy the fear.” His recommendation gains particular resonance knowing that GameStop already invested $513 million in 4,710 bitcoins last May. This confidence is based on solid technical fundamentals. On-chain data reveal that 3.77 million BTC have been withdrawn from exchange platforms over the last five years, drastically reducing available supply. This strengthened HODL strategy could catalyze a new bullish phase, with some analysts even talking about a target of $230,000.

The U.S. political environment also remains favorable. Donald Trump’s public support for the crypto industry continues to fuel positive expectations. Michael Saylor of MicroStrategy even goes as far as to predict the definitive end of bear markets, betting on a Bitcoin at one million dollars. Bitcoin experienced a significant decline, falling below $103,000 following Israeli airstrikes on Iran. The cryptocurrency market faced a downturn as geopolitical tensions escalated, with Bitcoin reaching a low of $102,822. The sell-off deepened after the Israeli airstrike, which shook global markets and prompted a broad flight from risk assets. Bitcoin led the decline, breaking through key technical levels to trade below $105,000 and later touching an intraday low of about $102,934. The sudden drop triggered a wave of forced liquidations, with large, highly leveraged traders among the hardest hit. The sell-off coincided with confirmation that Israel had conducted large-scale air-strikes on Iranian nuclear installations, sending shockwaves through the market. The cryptocurrency market as a whole felt the impact, with Bitcoin falling sharply late Thursday, sliding over 4% to $103,556 following the airstrikes that intensified already fragile Middle East tensions. The market’s fragility amid geopolitical shocks was underscored by the estimated $335 million to $360 million in positions that evaporated within one hour of the strikes.