XRP News Today: Bitcoin Drops 1.8% to $98,200 Amid U.S. Iran Tensions

Bitcoin’s price experienced a sudden and dramatic drop, falling below the $100,000 mark following news of U.S. military strikes on Iranian nuclear facilities. This geopolitical escalation triggered a wave of panic selling across the global cryptocurrency market, with Bitcoin's price plummeting to $98,200 as of 03:00 UTC on June 22, 2025. The sharp decline in Bitcoin's value was accompanied by a significant drop in Ethereum, which fell by 10% to $3,150 within the same timeframe. This sudden downturn reflects heightened geopolitical risk, prompting traders to reduce their exposure to crypto assets amid global uncertainty.

The geopolitical tensions have led to a widespread risk-off sentiment across global markets, with investors fleeing to safer assets. Equity and commodity futures markets are expected to open with elevated volatility, and traders are advised to monitor support levels and liquidity closely as crypto markets react to macro events. The S&P 500 futures are already signaling a bearish start, down 1.2% in pre-market trading, while gold futures have spiked by 2.3% to $2,650 per ounce. This flight to safety is directly impacting crypto assets, as Bitcoin and Ethereum trading pairs against stablecoins like USDT on Binance saw a surge in sell orders.

The correlation between traditional markets and cryptocurrencies is evident, as fear grips investors amid uncertainty over potential escalations in the Middle East. For crypto traders, this event underscores the vulnerability of digital assets to macroeconomic and geopolitical shocks, particularly when stock markets are poised for volatility at the opening bell. Bitcoin’s drop below $100,000—a psychological and technical support level—has opened the door to further downside risks, with potential targets at $95,000 if selling pressure persists. Ethereum’s -10% decline has pushed it below its 50-day moving average of $3,300, signaling bearish momentum with increased liquidations of leveraged long positions on platforms.

Cross-market analysis reveals a tight correlation between crypto and equity futures, as the Nasdaq 100 futures dropped 1.5% in pre-market trading, mirroring Bitcoin’s decline. This synchronized movement suggests that institutional investors are reducing exposure to high-risk assets across both markets. For crypto traders, opportunities may arise in shorting Bitcoin-USDT or ETH-USDT pairs on exchanges, where order book depth shows significant sell-side liquidity. Additionally, crypto-related stocks are likely to face downward pressure at the stock market open, presenting a potential hedging strategy for crypto portfolios by shorting these equities or related ETFs.

From a technical perspective, Bitcoin’s Relative Strength Index (RSI) has fallen to 38 on the daily chart, indicating oversold conditions that could precede a short-term bounce if geopolitical tensions ease. Ethereum’s trading volume surged by 42% to $18.5 billion in the last 24 hours, reflecting panic selling, while on-chain data shows a 15% increase in ETH transfers to exchanges, signaling capitulation among holders. In terms of market correlations, Bitcoin’s 30-day correlation coefficient with the S&P 500 remains high, highlighting how closely crypto tracks equity sentiment during crises. Institutional money flow is also shifting, with Grayscale’s Bitcoin Trust recording net outflows, while stablecoin inflows on exchanges spiked, suggesting a flight to cash equivalents amid uncertainty.

For traders, monitoring the opening of equity futures will be critical, as a deeper sell-off in stocks could push Bitcoin toward $95,000, while a stabilization in risk appetite might offer a buying opportunity near current levels. The interplay between stock and crypto markets remains a key driver, with potential volatility in crypto-related ETFs. Navigating this environment requires a keen eye on both geopolitical headlines and cross-market data to capitalize on emerging trends and mitigate risks effectively.

Bitcoin’s unexpected plunge below $100,000 over the weekend has alarmed investors, marking the lowest point since May. This decline was predominantly influenced by geopolitical tensions, specifically Iran’s potential closure of the Hormuz Strait and increasing risks in the Middle East. As the U.S. initiated airstrikes on Iran, the markets witnessed a pronounced shift towards safe havens, heightening activities in the energy sector.

Nestled between Oman and Iran, the strategically vital Hormuz Strait connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. With about 20% of global oil trade passing through this channel, its closure could spark a severe supply crisis. Recent reports of Iranian authorities contemplating this closure intensified expectations of a surge in oil prices at the week’s start. This has led to projections of intensified volatility within energy markets by both investors and experts alike.

On Wall Street, the escalating tensions in the region have driven up a tendency to shun risks. In the wake of U.S.-led airstrikes, over 50 major oil tankers reportedly began exiting the Hormuz Strait. Analysts predict a rapid rise in oil prices owing to a sudden contraction in supply once markets resume operations.

In a grim scenario, oil prices per barrel could soar to $120-130, potentially inflating the U.S. inflation rate to 5%. Not only would this be the highest inflation level since March 2023, but the U.S. Federal Reserve might also have to increase interest rates.

The cryptocurrency market hasn’t been left unscathed by these developments. Following Bitcoin’s sharp decline, major altcoins such as XRP, Solana (SOL), and Ethereum (ETH) have also trended downward. XRP plummeted to its lowest since April 10, while Ethereum revisited levels from early May.

The observed volatility underscores how Bitcoin and other crypto assets remain susceptible to fluctuations in high-risk environments. As noted in our Friday evening assessment, declining weekend volumes heighten the risk of sharp losses, making this downturn unsurprising.

Uncertainty in energy markets could potentially disrupt supply chains and international economic balances. Consequently, both financial and real sector stakeholders must stay vigilant and prepare for abrupt fluctuations. Even rumors of the Hormuz Strait’s closure have triggered such declines, meaning any actual move could ignite a historic drop. Increased activity is expected tonight.

The rise in geopolitical risks has prominently impacted financial markets, drawing particular attention to energy and crypto sectors. Oil shipments via the Hormuz Strait are directly affected by regional political developments, and discussions of Iran possibly closing the strait have heightened supply and price risks globally. Amid this heightened volatility, cryptocurrencies face an elevated risk of value erosion. Analysts urge investors to closely monitor developments and manage their portfolios with increased caution.