Bitcoin Drops 3.5% to $101,280 After U.S. Strikes on Iran

Bitcoin has shown signs of recovery after falling below the $100,000 mark for the first time since May. As of early trading on Monday, June 23, 2025, Bitcoin was trading around $101,200 in Asian markets, following a tumultuous weekend driven by escalating geopolitical tensions.

The sharp decline in price was a response to President Donald Trump’s surprise military operation, "Operation Midnight Hammer", which targeted Iran’s nuclear infrastructure. The strikes, launched on Saturday, June 21, 2025, aimed to cripple key facilities, including the heavily fortified Fordow site. President Trump confirmed that B-2 stealth bombers had successfully deployed Massive Ordnance Penetrators on three of Iran’s major nuclear facilities, with satellite imagery confirming severe structural damage and large craters at the targeted sites.

The U.S. administration had given Iran a two-week ultimatum before launching the operation. The strike caught both markets and Tehran by surprise. Iran’s initial response included a missile barrage on Tel Aviv and Haifa, raising fears of a broader regional conflict.

Crypto markets reacted swiftly, with Bitcoin plunging as much as 4% to an intraday low of $98,900. Ethereum followed suit, falling nearly 10% to touch $2,150, both assets hitting their lowest levels since early May.

The sell-off triggered massive liquidations. Over $1 billion in cryptocurrency positions were liquidated in 24 hours, with $901 million in long positions and $124 million in short positions wiped out. Liquidations surged more than 600% in just one day, reflecting intense market volatility.

Analyst Pierre Rochard explained that the drop was not due to fundamental flaws in Bitcoin but rather its nature as a global, highly liquid asset. He noted that BTC is often sold quickly to deleverage other positions when risk-off sentiment dominates.

Despite the modest recovery, Bitcoin’s position remains fragile. Analysts warn that further geopolitical escalations, as Iran targets oil transit routes like the Strait of Hormuz, could send prices back into decline. The Strait is critical to global oil supplies, and any disruption could shock energy markets and trigger a broader flight from risk assets, including crypto.

Market participants are now watching for Iran’s next move, with concerns that retaliation or cyber warfare could further rattle financial markets. The interplay between global conflict and crypto prices has become increasingly pronounced in recent years. As geopolitical events unfold in real-time, the crypto market continues to act as both a risk asset and a barometer of global investor sentiment.

Bitcoin experienced a significant drop to $101,280 following the U.S. missile attacks on Iranian nuclear sites, sparking widespread panic in the crypto market. This event marked the first time the U.S. had directly intervened in the ongoing conflict between Iran and Israel, leading to a 3.5% decline in the combined crypto market over the past 24 hours. Notable assets such as Ethereum, Ripple, Solana, and Cardano also saw substantial drops, with Ethereum and Cardano falling by 5.8% and 4.7% respectively. Despite the market turmoil, Bitcoin demonstrated resilience, bouncing back to $102,700, marking the 44th consecutive day it has maintained a price above $100,000. This stability has led investors to view Bitcoin as a potential flight to safety, similar to physical gold during wartime, due to its recession-proof nature and freedom from traditional financial risks.

The recent drop in Bitcoin's price was attributed to a liquidity sweep, with a significant liquidity wall now ahead at $110,500-111,000. If Bitcoin can break through this level, it could potentially reach over $125,000 in the short term. Institutional investors continue to buy Bitcoin and Ethereum on dips, with positive net inflows into Bitcoin ETFs on June 20. This institutional support contrasts with the capitulation of many retail traders due to escalating global affairs. The question for investors now shifts from why crypto is crashing to what is the best crypto to buy on this dip.