#IsraelIranConflict Explanation of the Crypto Market Decline – And What’s Coming Next

The crypto market is under pressure today, with Bitcoin fluctuating around $104.9K (down ~2.6%). This pullback is triggered by several key factors:

1. Geopolitical Turmoil

Israeli military airstrikes against Iran have shaken global markets, triggering sharp risk sentiment. Bitcoin dropped nearly 4% amid fears of a broader conflict.

2. Mass Liquidation

Over $1.16 billion in crypto positions have been liquidated in just 24 hours—dominated by long liquidations—which reinforces downward pressure.

3. Fed Interest Rate Policy Changes

Disappointing US inflation data has dashed hopes for a Fed rate cut in June. With hopes for a rate cut vanished, crypto has lost some of its recent tailwinds.

A simple pullback? Technically, yes. $BTC has erased gains and dropped below the key support zone around $106K–$108K. The next critical support is between $100K–$102K, but if that holds, we could see consolidation and a recovery back.