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Bitcoin Dips Below $106K Amid Middle East Tensions as Institutional Confidence Persists

Bitcoin experienced a 4.5% decline to $104,343 following Israeli airstrikes in Iran, reflecting financial market reactions to escalating Middle East geopolitical tensions.

Despite a $420 billion reduction in global cryptocurrency market capitalization and $1.2 billion in leveraged position liquidations, technical indicators signaled a controlled correction. Bitcoin’s Relative Strength Index at 47 and Average Directional Index at 17 demonstrated weak downward momentum without panic-driven selloff characteristics.

Institutional confidence remained resilient as spot Bitcoin ETFs recorded $86.31 million in net inflows during the decline. The Crypto Fear & Greed Index concurrently shifted from ‘greed’ to ‘neutral’, underscoring measured market sentiment.

Altcoins showed heightened volatility amid risk-off positioning, with Ethereum dropping 8.2% and tokens like Fartcoin experiencing steeper corrections. Traditional markets mirrored the uncertainty, as gold rose 1.8%, Brent crude surged over 7%, and defense equities like Lockheed Martin gained approximately 3%.

The coordinated movements across asset classes highlight cryptocurrency’s evolving sensitivity to geopolitical events, while sustained institutional participation suggests underlying market strength despite short-term volatility.

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