Bitcoin Drops 3.87% Amid Middle East Tensions

Bitcoin (BTC) experienced a significant pullback on June 17, with its price sliding over 4% amidst renewed military and political tensions between Israel and Iran. The flagship cryptocurrency reached an intraday low of $103,300 before bulls intervened to stabilize the price, pushing it back above $104,000. As of the latest update, Bitcoin was trading at $104,439, reflecting a roughly 3.87% decline over the past 24 hours. The broader crypto market fared worse, with an average decline of 6% across the board.

The impact on altcoins was substantial, with nearly $508 million in liquidations recorded in the past 24 hours. Ethereum (ETH) positions accounted for over $167 million of these liquidations. ETH was trading at $2,471.72, down 5.58% over the past 24 hours, while XRP was trading at $2.16 after a 6% decline. BNB saw relatively lower volatility, down around 1.6% over the past day and trading at $647.77. Solana was down 5.6% and trading at $148.77, while Cardano was down 5.6% to $0.6175.

The price action was directly linked to the outbreak of fresh hostilities in the Middle East. Israel reported that its forces had killed a senior Islamic Revolutionary Guard Corps commander in Tehran early on June 17. This latest strike was part of a five-day exchange involving missiles, drones, and warnings to civilians. In Washington, President Donald Trump escalated the rhetoric by posting that the US “knows where Iran’s Supreme Leader is hiding” and demanded Iran’s “UNCONDITIONAL SURRENDER,” raising concerns about possible US involvement. Traders reacted to the prospect of wider regional conflict, leading to risk aversion across global assets, including crypto.

Analysts have recently highlighted Bitcoin’s relative strength, suggesting it as a viable alternative to increase a hedge in portfolios. Ecoinometrics found that adding a 10% Bitcoin sleeve to a classic 60/40 allocation lifted the past-year risk-adjusted return to 0.80 with a 14% gain, compared to 0.62 and 12% for the same swap into gold. Fidelity strategists Chris Kuiper and Jurrien Timmer noted that persistent inflation and policy uncertainty have weakened the hedging role of bonds, making scarce digital assets such as Bitcoin an increasingly favored ballast in diversified portfolios.