Bitcoin prices declined below the $100,000 this weekend.
Bitcoin prices dropped below $100,000 this weekend, briefly trading below that crucial level as global markets responded to the latest developments in the conflict between Iran and Israel.
The world’s most valuable digital currency by total market value approached $98,400 on Sunday, June 22, according to Coinbase data from TradingView. As recently as Friday, June 20, the cryptocurrency had been trading above $105,000.
Jacob Joseph, Senior Research Analyst at CoinDesk Data, commented on this decline, stating via email that “This movement has coincided with escalating geopolitical tensions involving the U.S., Israel, and Iran.”
“Investor sentiment appears to have become more cautious amid uncertainty over potential U.S. involvement in the Israel-Iran conflict, which has likely contributed to the broader retreat seen in risk assets,” he continued.
Marc P. Bernegger, cofounder of crypto fund of funds AltAlpha Digital, offered a similar take, indicating that “Escalating geopolitical issues, particularly in the Middle East, were cited as a trigger for market uncertainty.”
“Tensions between Israel and Iran may have prompted capital flight from risk assets like Bitcoin, pushing prices below the $100,000 psychological support level,” he clarified through emailed commentary.
James Maxfield, head of trading for Gemini EU, also chimed in, emphasizing the losses bitcoin (and ether) suffered over the weekend.
“This followed U.S. airstrikes on Iranian nuclear facilities, which triggered a sharp selloff across crypto markets,” he said through email.
“The downturn came after President Trump confirmed the strikes and warned that further military action was possible, fueling fears of broader conflict.”
Potential Impact On Energy Markets
Some analysts have voiced concerns about how the ongoing conflict in the Middle East could affect global energy markets.
Dom Kwok, cofounder and COO of educational platform EasyA, spoke to this matter, specifying via email that “Fears around Iran potentially closing the Strait of Hormuz, through which 20% of global oil flows, have sparked concern.”
Last year, 20 million bpd moved through this straight on average, which amounted to approximately 20% of petroleum liquids consumed by the global market, according to an analysis conducted by the U.S. Energy Information Administration.
Should this straight close, industry participants will have some very limited options for moving oil out of this area.
As a result of these factors, the EIA has described the Strait of Hormuz as “one of the world’s most important oil chokepoints.”
“If disrupted, oil prices could spike, driving inflation higher,” Kwok noted. “Historically, inflationary pressure prompts investors to exit perceived high-risk assets and shift towards cash and gold.”
The analyst shed further light on the subject, offering greater detail on the market’s response to the latest geopolitical developments.
“Importantly, this isn’t a crypto-specific reaction. It’s a classic flight-to-safety move,” he stated.
“In times of conflict, forecasting future risk becomes nearly impossible, so capital flows to traditionally safer assets. While many believe Bitcoin should serve as a hedge, institutions still classify it as a high-risk asset.”
“Fortunately, these shocks are often short-lived,” he added. “Temporary supply disruptions rarely result in lasting inflation unless prolonged.”
“Past events, like COVID’s initial crash, show that such dips can offer compelling long-term buying opportunities. The fact BTC has bounced back above $100,000 shows this.”
