Global markets were shaken on Thursday night after Israel launched airstrikes on Iran’s nuclear facilities. The sudden escalation raised fears of a broader conflict in the Middle East, triggering a wave of panic among investors — and crypto was no exception.
Bitcoin Drops Below $105K Amid Escalating Tensions
Bitcoin saw a sharp decline, falling below $105,000 shortly after the news broke. The total market cap of cryptocurrencies dropped to $3.26 trillion, wiping out billions in value. According to CoinGlass, liquidations surged by over 252% in just 24 hours, reaching $1.15 billion and impacting nearly 248,000 traders.
Altcoins took an even bigger hit:
- SPX6900 plunged 20%
- Fartcoin dropped 18%
- Celestia (TIA) fell nearly 15%
- Bonk slid more than 11%
Traditional markets also stumbled, with futures tied to the Dow Jones, S&P 500, and Nasdaq 100 all dropping over 1%.
Will the Bull Run Continue or Crash?
The geopolitical uncertainty has raised serious concerns. A prolonged conflict in the Middle East could push oil prices higher, leading to stubborn inflation. This might force central banks, especially the U.S. Federal Reserve, to keep interest rates elevated — a scenario that typically hurts risk assets like cryptocurrencies.
But history tells a different story.
Crypto Has Rebounded From Global Shocks Before
Bitcoin and the broader crypto market have shown resilience in past crises:
- In April 2025, Bitcoin fell to $74,488 after Donald Trump’s tariff threats — only to hit a record high of $111,928 two months later.
- In March 2020, it dropped from $10,480 to just under $4,000 during the COVID crash, then soared to $68,897 by November 2021.
- In 2022, Bitcoin slumped to $34,000 after Russia invaded Ukraine, then bounced back to nearly $48,000 within a month.
Bitcoin’s Fundamentals Still Look Strong
Despite short-term volatility, Bitcoin remains fundamentally solid:
- Institutional demand is surging, with ETFs like BlackRock’s IBIT holding over $72 billion in BTC.
- Corporate accumulation is rising — Trump Media, GameStop, MetaPlanet, and others are buying in.
- Exchange supply is shrinking. Data from Santiment shows Bitcoin holdings on centralized platforms have dropped from 1.5 million in January to just 1.2 million now.
- Funding rates are climbing, a bullish sign that traders expect a rebound.
Chart analysts also point out that Bitcoin is forming a “cup and handle” pattern — a classic setup that often precedes a breakout. If the pattern holds, BTC could be headed toward a new high above $140,000.
Final Thoughts: A Temporary Setback or Long-Term Shift?
While the geopolitical risk is real, the crypto market has a history of recovering quickly from global shocks. If tensions ease and fundamentals remain strong, the current dip could be just another bump in the road for Bitcoin and the wider crypto bull run.
Stay tuned — this ride is far from over.
