$BTC
Bitcoin Under Pressure, Middle East Geopolitics Tests Crypto Market Resilience
Today, the crypto market is experiencing severe turmoil. Bitcoin, as the most dominant crypto asset, plummeted to around $103,000 after briefly touching a daily high of $108,000. This decline is not solely due to market technicals but is triggered by the raging geopolitical conflict between Israel and Iran. Israel's airstrikes on targets in Iran have shifted global sentiment to a 'risk-off' mode, with risky assets like crypto being the first victims.
Over $1 billion in leveraged positions across the crypto market were liquidated in less than 24 hours. This indicates that many investors—especially short-term traders—were unprepared for the surge in global uncertainty. Instead of becoming the 'digital gold' or safe haven, Bitcoin is experiencing massive sell pressure, breaking the narrative that it is resilient to geopolitical crises.
This situation is exacerbated by a spike in oil prices that could potentially trigger further inflation and increase the likelihood of a hawkish response from central banks like The Fed. If interest rates are raised again or remain high for an extended period, global liquidity will tighten further—and this is bad news for speculative assets like crypto.
Technically, BTC is now approaching the psychological level of $100,000. If this level is breached, selling pressure could deepen. However, on the other hand, long-term investors view this moment as an accumulation opportunity, especially if the conflict can be subdued and the market stabilizes.
This event serves as an important reminder that crypto, despite being touted as the future of finance, remains highly influenced by geopolitical dynamics and global sentiment. Bitcoin is not immune to global storms. It instead reflects how the market assesses risk, fear, and hope.
Is this the end of the bull market, or just a correction in a larger upward trend? The answer lies not only in the charts but also on the diplomatic tables and global headlines.
