$BTC Middle East escalation: Renewed strikes between Israel and Iran recently triggered a sharp drop in BTC — falling from ~$107K to just above $103K — before rebounding to the low $105K range .

Market impact: Crypto markets lost an estimated $230 billion in value in one day due to the conflict, with Bitcoin and other key assets taking significant hits .

Sentiment resilience: Despite the volatility, institutional and whale investors have stepped in to accumulate BTC, and the Crypto Fear & Greed index remains solidly in “Greed” zone — signaling continued bullish sentiment .

Why BTC Holds Firm

1. Risk-on asset behavior: As a part of broader risk-on portfolios, Bitcoin follows equity market sentiment—thus conflict-driven risk aversion often triggers sell-offs.

2. Strong support zones: Technical analysis suggests solid buying support around $105K, helping it rebound swiftly after dips .

3. Institutional inflows: Continued inflows into BTC—tracked at over five consecutive days—indicate confidence from long-term investors .