The direct conflict between Israel and Iran has significantly impacted the Bitcoin market, reinforcing its short-term correlation with risk assets rather than a "digital gold" safe-haven narrative. Following Israel's airstrikes on Iran on June 13, 2025, Bitcoin saw a sharp decline, dropping over 3% and at one point dipping below $103,000. This sell-off was accompanied by over $1 billion in crypto liquidations, primarily long positions, as investors shifted towards traditional safe havens like gold and the US dollar.
While Bitcoin has shown resilience and quick recoveries after past geopolitical events, the immediate reaction highlights its sensitivity to acute global instability. Analysts are now closely watching the $103,000 to $100,000 support levels, with a sustained close below potentially signaling further downside. The market remains highly volatile, and the trajectory of BTC will largely depend on the de-escalation or further escalation of the conflict.
