Bitcoin price drops to $98.5k amid rising Israel-Iran war tensions, but former Binance CEO CZ calls it a dip before the next ATH.
Over the past year, the price of Bitcoin has moved from its bearish phase to bullish, reaching an ATH of $111.9k a month ago.
However, the Israel-Iran conflict and macroeconomic events have pushed the token to multi-month lows, signaling a loss of investor confidence in the digital asset. Still, the former Binance CEO has a different take, calling it a dip before the ATH. Let’s discuss.
Bitcoin Price Drops Near $100K, Fueling Crypto Market Crash
The escalation of the Israel-Iran conflict, especially when the US joined the war, led to Bitcoin's price reaching $98.5k. This is the first time $BTC has fallen to this low in months, creating widespread fear among holders.
As investors become fearful of the current geopolitical situation, traditional assets are in demand, causing $BTC , ETH, and others to crash. That fear fueled today's crypto market crash, wiping out 1.24% of the global market cap.
Additionally, $658M was lost in liquidations, affecting 187,503 merchants. More is at risk as the market currently lacks bullish catalysts. Even the Altcoin Season Index has fallen to a 2-year low, and the odds of a bull run in 2025 are over.
Earlier this year, many experts predicted that $BTC price would achieve a new ATH of around $150k by then. However, geopolitical tensions and interest rate delays have changed the trajectory.
Interestingly, seasoned market investors and industry leaders like the former Binance CEO call it the calm before the storm.
Binance CEO says everything is a dip before ATH.
Former CEO of Binance, Chanpeng Zhao, believes that every drop is a drop before it finally reaches its peak. However, this is not true for all cryptos, but a handful of those that have demand and potential.
Rather than worry about a dip, CZ says, the obvious question is whether the next ATH will happen, before adding, "Only a few strong coins will do that. Look for long-term staying power and growth potential."
Experts like SightBringer have dismissed CZ’s claim and argument that Bitcoin is structurally wired for new ATHs, citing supply and demand.
The limited number of coins at this level reflects market volatility. Furthermore, it targets low-usage tokens, which fail to survive competition, changing trends, and market volatility.
Investors should remain alert to physical and technical events surrounding crypto and trade strategically.