Bitcoin Drops 10% to $102,000 Amid US Iran Tensions

Bitcoin (BTC) faced significant downward pressure as geopolitical tensions escalated, with the price dipping below $102,000 following confirmation of US strikes on Iranian nuclear facilities by President Donald Trump. This news sparked concerns among traders about potential further declines, with some analysts suggesting that the price could drop to as low as $93,000 to $94,000 before finding support.

Traders noted that historical data showed Bitcoin often experienced price surges following geopolitical conflicts. For instance, in 2022, Bitcoin saw a 42% increase in 35 days after the start of the Ukraine war, despite being in a bear market at the time. Similarly, in 2024, Bitcoin rallied significantly after conflicts between Iran and Israel. These historical precedents led some traders to speculate that the current geopolitical tensions could potentially fuel a similar price rebound for Bitcoin.

However, the immediate market reaction was one of caution. Bitcoin's price strength lacked conviction, and traders were closely monitoring key support levels. Popular trader Cas Abbe suggested that a drop to the low $90,000 zone had only a 20% to 25% chance of occurring. Another trader, Crypto Tony, expressed a desire to see the $104,500 level hold to maintain bullish control. The market was on track for its lowest weekly close since early May, with order book liquidity around $97,000 identified as a potential support level.

Despite the short-term volatility, some traders remained optimistic about Bitcoin's long-term prospects. The historical data indicated that geopolitical conflicts had often acted as catalysts for Bitcoin's price increases, and there was a possibility that the current situation could follow a similar pattern. However, the immediate focus was on navigating the current market conditions and identifying key support levels to prevent further declines.