Investors are abandoning high-risk assets as geopolitical tensions escalate, while BTC loses traction on 24-hour high of $108,500.Tensions in the Middle East are rising after Israel raids on Iranian nuclear sites overnight Thursday into Friday. In response to rising geopolitical uncertainty, investors have been quick to dump risky assets.
Bitcoin fell sharply late Thursday to an intraday low of $102,556, before recovering and is currently trading above $104,000, down 3.4%.
Tensions between Israel and Iran spark panic in markets
The jolt comes as BTC managed to reclaim a 24-hour high of $108,500.
Panic quickly spread across the markets and the prospect of a worsening geopolitical crisis in the Middle East prompted a retreat from high-risk assets .
The sharp sell-off saw $427 million in long positions liquidated in the last 24 hours.
Israeli authorities confirmed that the strikes hit military facilities near Tehran and Tabriz, calling the action a preemptive measure in response to Iran's nuclear threat.
Israel Threatens Attacks to Continue for Days as Bitcoin Continues to Suffer Violent Losses
Prime Minister Benjamin Netanyahu called the operation a necessary step to “eliminate this threat,” adding that it would continue “for as long as necessary.”
Iran responded harshly to the attacks launched by the Israeli army. Israeli Defense Minister Katz declared a national emergency pending an Iranian counterattack with drones and missiles. Meanwhile, Iranian authorities say the commander of the Revolutionary Guards, the head of the armed forces and scientists were killed in the attack.
Iranian leader Khamenei promptly declared a counteroffensive in response to the Israeli attack.
International Reaction to Israel's Attack on Iran
The United States has declared its non-involvement in the attack. In response, it has begun withdrawing diplomats from Iraq and has offered voluntary evacuations to military families in neighboring countries.
The State Department also issued warnings for American citizens to leave Iraq, citing regional instability.
In Washington, Secretary of State Marco Rubio said that Israel acted unilaterally , even though it had already informed the United States about it.
Former Trump adviser Steve Witkoff reiterated that nuclear negotiations with Iran will not stop, even if the risks of escalation remain.
Bitcoin Loses Its Safe Haven Status in Times of Geopolitical Crisis
As has happened in the past, Bitcoin has proven to be sensitive to geopolitical tensions . In these circumstances, traders tend to reduce their exposure to volatile, high-risk assets, negatively impacting BTC prices.
While the crypto asset is seen by some as a long-term hedge, in the moment the price often tends to reflect global risk sentiment.
Ethereum also followed the bearish trend, falling below $2,500, while XRP retreated to $2.10, increasing pressure on the entire market.
Bitcoin Struggles to Hold $104,000
At the time of writing, Bitcoin is trading slightly above $104,000 , showing signs of stabilizing after an initial sharp drop of 4%.
On the 2-hour chart, BTC remains under pressure. The Bollinger Bands widen and the price approaches the lower band, a sign of increased volatility and bearish pressure.
The relative strength index (RSI) at 25.51 has fallen into oversold territory, which could herald a short-term rebound.
However, the MACD values remain strongly negative (MACD line at -438.59), indicating that the bearish trend is still dominant.
Looking at the 30-minute timeframe , it is clear that the price is struggling to reclaim the $105,000 zone. The RSI is at 32.30, still close to oversold levels, while the MACD continues to expand lower, reinforcing the risk of further declines if support breaks.
The 1-minute chart reflects very short-term recovery attempts, the RSI rises to 66.49 and the MACD crosses upwards. This small recovery is not confirmed by the higher timeframes, so caution is required.
The key levels to watch are the immediate support at $102,533 and resistance at $105,693.
A close above $105,000 could ease the selling pressure , otherwise a drop towards $100,000 cannot be ruled out.
For now, the sentiment remains risk-off, and BTC bulls will have to defend these levels to avoid a deeper correction.
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