Bitcoin Drops as Middle East Conflict Escalates

Highlights:

• Bitcoin fell as much as 3%, dipping below $103,000 at the time of writing, following Israel’s airstrikes on Iran.
• Ethereum dropped nearly 6.9%, reflecting broader market jitters across cryptocurrencies.
• Analysts say geopolitical tensions are driving the downturn, with key technical support for Bitcoin expected around $101,000.

Geopolitical Tensions Rattle Crypto Market

Bitcoin and other cryptocurrencies experienced sharp declines following reports that Israel had launched airstrikes on Iran, marking a significant escalation in geopolitical tensions. At the time of writing, Bitcoin was trading below $103,000, having dropped by as much as 3% during Friday morning trading in Singapore. The sell-off rippled across the digital asset market, with Ethereum (ETH) falling even more steeply—by approximately 6.9%.

Investors Turn Cautious Amid Global Uncertainty

The sudden price movement reflects broader investor anxiety over rising instability in the Middle East. Caroline Mauron, co-founder of crypto derivatives liquidity provider Orbit Markets, noted that the crypto market is behaving similarly to other high-risk asset classes in reaction to the news. “Crypto is reacting negatively to news of Israel strikes in Iran, in line with major risk assets,” she said.

Technical Outlook and Near-Term Forecast

Despite the drop, some analysts are pointing to possible support levels. Mauron added, “We expect to see technical support around $101,000, but geopolitical news will drive price action from here in the short term.” This means traders will likely keep a close eye on further developments in the region, as any escalation or de-escalation may trigger more volatility.

While cryptocurrencies have often been seen as hedges against traditional market turmoil, events like this highlight their vulnerability to global uncertainty. Market participants are now watching closely to see if Bitcoin can hold above its key support levels or if further losses are on the horizon.

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