Bitcoin Drops 11% on Geopolitical Tensions, Rebounds 3% on Institutional Buying

Bitcoin's price experienced a significant drop, falling 11% from $110,000 to $98,000 starting from June 10th. This decline was attributed to geopolitical tensions involving Iran, Israel, and the US, which had a ripple effect on financial markets, including cryptocurrencies. However, the price quickly rebounded by 3% on Monday, as several large investors and institutions remained optimistic despite the ongoing geopolitical uncertainties. These entities viewed the current price dip as an attractive investment opportunity, adhering to the strategy of "buying the dip" amidst short-term market volatility.

At the time of writing, Bitcoin was trading at $101,569, showing a slight recovery from its recent crash. This upward movement coincided with Michael Saylor, a long-term Bitcoin advocate, announcing plans for additional Bitcoin purchases on June 22nd. Saylor shared MicroStrategy's portfolio tracker chart and expressed confidence in Bitcoin's continued advancement. This optimism was further supported by analyst Captain Faibik, who identified a weekly RSI divergence that could potentially drive Bitcoin's price towards $92,000 to $94,000 levels. Saylor's bullish stance suggests that buying during this dip could yield substantial returns as Bitcoin's price rises in the future.

Following Saylor's lead, Metaplanet acquired an additional 1,111 BTC worth $111 million. Similarly, publicly traded companies Panther Metals and Sequans announced plans to purchase significant amounts of Bitcoin for their treasuries. Panther Metals aims to buy 4 million pounds, equivalent to $5.35 million, while Sequans intends to raise $384 million to launch its Bitcoin treasury. These institutional purchases indicate a growing interest in Bitcoin as a store of value, despite the current market volatility.

Analysts have noted that the current price dynamics suggest further potential declines, with bears being aggressive and significant liquidity positioned on the topside. However, if institutional accumulation continues, these entities could secure Bitcoin at discounted rates. A sudden surge in demand could liquidate the topside bears, potentially triggering a short squeeze that propels Bitcoin to new heights. Additionally, despite the geopolitical challenges in the second quarter, an analysis revealed that the total market cap had reclaimed almost a 2-year trendline support, indicating rising odds of a significant price spike similar to previous market movements.