Bitcoin has tumbled closer to the psychologically important $100,000 price level, dashing traders’ hopes of a new all-time high after Israel launched a series of airstrikes on Iran.
Explosions reportedly rocked Iran’s capital of Tehran at 22:50 UTC on Thursday before Israel claimed responsibility for the attacks, which saw Bitcoin (BTC) drop 2.8% from $106,042 to $103,053 within 90 minutes before slightly recovering to $104,370 at the time of publication, according to CoinMarketCap.
Bitcoin downtrend caught optimistic traders off guard
The drop caught traders offside, with approximately $427.84 million in long positions liquidated over the past 24 hours, according to CoinGlass data. Just days earlier, on Tuesday, Bitcoin had climbed as high as $110,265, just below its May 22 all-time high of $111,940.
Although gold and oil prices have risen 1.44% and 11% over the past 24 hours, some crypto analysts believe this outperformance could quickly change.
Bitcoin entrepreneur Anthony Pompliano said that while oil and gold are currently rising and Bitcoin is falling, history suggests this trend could soon reverse.
He added that the initial reaction is “exactly what happened” when Iran launched hundreds of rockets at Israel in October, when Bitcoin plunged 3%.
“Bitcoin ended up outperforming the other two over the first 48 hours in that situation,” Pompliano said.
Uncertainty lingers over what will happen next
“Will be interesting to see what happens here,” Pompliano added.
Israeli Prime Minister Benjamin Netanyahu said on Friday that his military’s strikes targeted Iran’s nuclear program and the “operation will continue for as many days as it takes to remove this threat.”
Iran’s supreme leader, Ayatollah Ali Khamenei, said in response to the strikes that Israel “should anticipate a severe punishment,” with the country having reportedly retaliated by launching over 100 drones.
US Secretary of State Marco Rubio said that the US had no part in the strikes.
Other Bitcoiners are saying now is the time to buy. Jan3’s Samson Mow said in a post on Thursday directed at GameStop CEO Ryan Cohen that the asset is in buying territory.
“[Cohen] this is where you buy it when it feels scary. If it dips lower and you feel even more nervous, buy even more,” Mow said.
Part of GameStop’s most recent $1.5 billion raise through convertible notes was used to purchase 4,710 Bitcoin — worth $513 million at the time — on May 28.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
