Bitcoin Drops 7% In A Week Amid Geopolitical Tensions

Coin WorldMonday, Jun 2, 2025 12:02 pm ET
1min read

Bitcoin's price has experienced notable volatility in recent weeks, with significant fluctuations observed. As of early June 1, the price of Bitcoin was around $104,250, marking a sharp decline from its late May highs above $112,000. This pullback has been attributed to various factors, including market sentiment and key risk events. By June 2, Bitcoin's price had further dropped to slightly above $104,000, indicating a short-term stagnation in the market. Despite this, analysts remain optimistic about the long-term prospects of Bitcoin.

One of the key factors contributing to the recent price movements is the escalation in geopolitical tensions, which has led to increased caution among investors. The market sentiment reflects this uncertainty, with several risk factors emerging that could impact Bitcoin's price in the near future. However, some analysts believe that these short-term fluctuations are part of a broader trend that will ultimately lead to a significant increase in Bitcoin's value.

Fundstrat's Tom Lee, a prominent analyst, has raised his 2025 Bitcoin target to $250,000, citing a huge demand versus supply imbalance. Lee believes that there are still a lot of potential Bitcoin buyers left over the next 10 years and that Bitcoin should have the same network value as gold in the long run. He also does not rule out the possibility of Bitcoin reaching $250,000 by the end of the year. According to the analyst's forecast, Bitcoin's price could skyrocket to as much as $3 million in the long term, driven by the limited supply of the cryptocurrency and the increasing demand from investors.

Despite the recent price decline, Bitcoin's price has shown signs of recovery. The 4-hour chart highlights a short-term descending triangle break on June 2, which helped lift Bitcoin's price above $105,400. This indicates that there is still potential for Bitcoin to recover and reach higher levels in the near future. However, analysts caution that the market remains volatile, and investors should be prepared for further fluctuations in Bitcoin's price.

On the hourly chart, the price of BTC is going up after a false breakout of the local support of $103,757. If growth continues, one can expect a test of the resistance of $105,972 shortly. On the bigger time frame, bulls have failed to keep the rise going after yesterday's bullish closure. If the bar closes near the support, traders may witness a breakout, followed by a move to the $103,000 range. From the midterm point of view, it is too early to make any distant predictions. If the weekly candle closes near $104,000 or below it, sellers may seize the initiative, followed by an ongoing decline to the $100,000 zone. Bitcoin is trading at $104,391 at press time.