$BTC Bitcoin dropped sharply early Friday following Israel’s overnight strikes on Iran, weakening its recent position as a perceived safe-haven asset.

The leading digital asset fell over 5 percent, from a local high of $108,000 on Thursday to approximately $103,000, as market participants reacted to escalating conflict in the Middle East.

Oil markets surged in response to the developments, with Brent and WTI crude benchmarks each climbing more than 10 percent.

As of press time, Bitcoin has recovered marginally to $104,165.