Bitcoin Rebound 5% After Israel Iran Tensions

Bitcoin (BTC) maintained a steady position near the $105,000 mark on June 13, demonstrating resilience in the face of escalating tensions between Israel and Iran. The conflict, which began with Israeli airstrikes on Iranian nuclear and military sites, prompted retaliatory drone and missile attacks from Iran, causing significant volatility in global markets.

The initial news of Israel’s attack led to a sharp decline in Bitcoin’s value, with the cryptocurrency plunging roughly 5% after market hours, reaching lows near $102,000. However, Bitcoin quickly recovered, rising above $104,000 as Asian markets opened for trading on June 13. Throughout the US trading session, Bitcoin remained within a tight price range between $104,500 and $105,600, despite a significant slide in traditional equity markets.

Investors flocked toward traditional safe havens, causing gold to climb more than 1%, while the U.S. dollar, Japanese yen, and Swiss franc gained ground. This shift in investor sentiment highlights Bitcoin’s sensitivity to global risk factors, as well as its potential to serve as a hedge against market volatility.

Despite the initial shock, Bitcoin’s rebound indicates that prices are being supported by broader positive trends in the crypto market. Some analysts believe that the resilience following the initial crash reflects an “80% rally setup” pattern similar to that seen during the October 2024 Iran-Israel escalation. This pattern suggests that Bitcoin may continue to rise in the coming weeks, as investors regain confidence in the cryptocurrency’s ability to weather geopolitical storms.

Markets are taking a wait-and-see approach amid lingering uncertainty, with Brent crude surging nearly 8% over worries about Middle East supply disruptions. The broader risk environment remains elevated, and oil’s move could dampen investor sentiment. However, its impact on monetary policy, particularly Federal Reserve decisions, may lend indirect support to risk assets like Bitcoin as markets reassess interest-rate paths.

While Bitcoin’s brief slump during the previous night highlights its sensitivity to global risk sentiment, its ability to rebound and hover around $105,000 throughout the trading session despite increased uncertainty reflects narratives of institutional backing, macroeconomic tailwinds, and historical price patterns. These factors suggest that Bitcoin may continue to serve as a safe haven asset in times of geopolitical turmoil, providing investors with a hedge against market volatility and uncertainty.