Bitcoin Drops 4% Below $100,000 After US Iran Airstrikes

Bitcoin, the world’s largest cryptocurrency, experienced a significant drop on Sunday, falling below $100,000 for the first time in over a month. This decline came in the wake of U.S. airstrikes on Iran, which occurred just hours prior. The cryptocurrency saw a 4% decrease over the past 24 hours, settling at approximately $99,300. Ether, the second-largest cryptocurrency by market capitalization, faced an even more substantial decline, losing nearly 10% of its value. The overall crypto market saw a 7% decrease over the past day.

The selloff in the crypto market was triggered by the U.S. bombing of three key nuclear sites in Iran on Saturday. This military action followed a series of escalating tensions in the region. In mid-June, a United Nations–backed nuclear watchdog reported that Iran was not complying with prohibitions against developing a military nuclear program. Israel responded to these allegations with airstrikes on Iran, leading to retaliatory actions from the Islamic Republic. On Saturday, the U.S. President announced that he had authorized the country's entrance into the conflict, further escalating the situation.

The President's announcement on social media emphasized the historic significance of the U.S.'s involvement, calling for Iran to agree to end the war. This geopolitical instability has had a direct impact on the crypto market, which has been volatile in recent months. Bitcoin’s recent drop below the psychologically important threshold of $100,000 follows a year of gains for the cryptocurrency. After the President won the 2024 presidential election in November, Bitcoin soared, along with major stock indices like the S&P 500. However, the cryptocurrency's gains were particularly steep, as investors saw a White House under the President, who has described himself as a “pro-crypto” leader, as a potential boon for the industry.

Once the President assumed office in January, Bitcoin quickly reached all-time highs above $100,000 in February. This surge was driven by executive orders designed to support the crypto industry. However, the cryptocurrency soon followed the broader financial markets and declined in price. In April, shortly after the President unveiled a suite of historically severe tariffs, Bitcoin dipped to almost $75,000, its lowest mark in 2025. Recently, Bitcoin has rallied, notching its all-time high in May as Wall Street investors piled back into the cryptocurrency through U.S. exchange-traded funds, or ETFs. However, in June, it has trended lower amid geopolitical instability in the Middle East.