Israel bombed Iran's nuclear facility again, let's talk about today's big drop in BTC! #BTC

Brothers, this morning (June 13th), BTC plummeted directly, with the price dropping to $103,493 at one point, I almost dropped my phone out of shock! This drop is quite severe, what exactly is going on? Let's break it down in simple terms:

1. The Middle East is in turmoil again, the market is terrified

Many big influencers are saying that this drop is closely related to Israel's bombing of Iran's nuclear facilities, and there has been unrest in the Middle East again last night, causing global financial markets to panic. High-risk assets like stocks and cryptocurrencies are the first to be hit, and BTC was directly smashed. Gold and oil are rising sharply, but BTC couldn't hold up to its title of “digital gold.” In short, when the market is scared, the crypto market gets hit hard.

2. No liquidity on-chain, volatility magnified

Some professionals mentioned that BTC transactions on-chain have recently resembled a dried-up riverbed, with liquidity extremely poor. Why? Many large holders have locked their coins through ETFs or OTC trades and aren't taking them out to play. There is less and less BTC in exchanges, and when the market shows any signs of instability, the price can fluctuate wildly. This drop in price was absolutely aided by the lack of liquidity!

3. The dollar is strong, BTC is suffering

Now let's talk about the broader environment, the US dollar index (DXY) has risen recently, and risk assets like BTC are suffering. There's still uncertainty about the Federal Reserve lowering interest rates, and high interest rates make people feel that trading cryptocurrencies is not as good as saving in the bank. Additionally, Trump has recently been shouting about increasing tariffs, which might cool down the global economy, dragging BTC down along with US stocks. In the short term, the crypto market and the stock market are indeed “brothers in difficulty.”

This drop in BTC is mainly due to the frightening situation in the Middle East, the wave of liquidations adding fuel to the fire, the lack of liquidity on-chain exacerbating the situation, combined with the strength of the dollar and economic uncertainty weighing down. In the short term, $100,375-$103,558 might have some support, but if it drops further, we need to be cautious. In the long term, institutions are still buying, and BTC still has potential! Brothers, don't panic, keep an eye on Middle Eastern news, on-chain data, and the Federal Reserve's movements, and act calmly!