The reason for Bitcoin's drop below $100,000 has been found! A triple blow has breached the defenses
Bitcoin plummeted by 3% in one hour under the impact of news about the U.S. military bombing Iran's nuclear facilities, briefly dropping below $100,000, with over $1 billion liquidated across the network. Some are questioning whether Bitcoin's safe-haven attributes are merely a legend.
The reasons for the drop actually conceal a deeper crisis with three layers:
① The lifeline of oil is threatened: If Iran blocks the Strait of Hormuz, oil prices could soar to $150. Severe inflation could force the Federal Reserve to delay interest rate cuts or even restart rate hikes, draining liquidity from the crypto market.
② Policy expectations reversal: The market originally bet on two interest rate cuts by the Federal Reserve within the year, but this may now be in vain.
③ Trump's tariff bomb: News of the U.S. expanding tariffs on China exacerbates global trade turmoil, adding to Bitcoin's volatility.
However, there is no need for excessive panic. Over the past three years of geopolitical conflicts, Bitcoin has consistently followed the script of "panic selling—liquidation—capital inflow."
Current technical analysis shows: $96,000 to $100,000 is a densely traded area; a breach could lead to a drop to this year's low. If it further retraces to $95,000 (the average cost for retail investors), it might be an opportunity to accumulate in batches.
War will not kill Bitcoin, but it accelerates market reshuffling. When the majority are in panic, those calm minds picking up chips amidst the gunfire may be waiting for the next round of revelry. The script for Bitcoin has always been "plummeting in doubt, rebounding in despair."
This time, I believe history will repeat itself!
