Bitcoin plunged nearly 5% to $102,822 following escalating geopolitical tensions between Israel and Iran, triggering over $427 million in long position liquidations across cryptocurrency markets.
The sharp decline coincided with traditional safe haven assets surging, including gold and crude oil, reflecting a broad risk-off sentiment among investors seeking stability during the conflict.
Analysts suggest the downturn may be temporary, with historical patterns indicating potential rebounds. Marcin Kazmierczak of RedStone noted that past geopolitical incidents typically caused short-term disruptions followed by recoveries, presenting possible buying opportunities.
Bitunix analysts contend Bitcoin could evolve into a safe haven asset if conflicts intensify, potentially driving prices toward the $110,350 liquidity threshold as capital seeks alternative stores of value.
Investors are advised to monitor geopolitical developments closely while maintaining balanced portfolio strategies to navigate ongoing market volatility.