Bitcoin dropped below $100,000 over the weekend, triggering a wider crypto market crash as fresh tensions in the Middle East spooked investors. It started after the U.S. carried out airstrikes on Iran’s nuclear sites, and Iran hit back soon after. The headlines shook global markets and led to a quick sell-off in risk assets.
Bitcoin fell as low as $99,191, breaking below six figures for the first time in several weeks. It’s now down more than 6% compared to the previous weekend. Panic selling took over and forced liquidations, slamming crypto exchanges. Altcoins like Ethereum and Solana tanked too, both dropping in double digits.
This Bitcoin crash wasn’t just about crypto. Investors were pulling out of anything risky, from crypto to tech stocks, as tensions in the Middle East kept getting worse. The sell-off was made worse by liquidations in derivatives markets, which added to the downward pressure.
Commenting on the price movement, Pierre Rochard, CEO of the Bitcoin Bond company, wrote: “Bitcoin has dipped below $100k not because the network relies on the Strait of Hormuz, not because the asset is over-leveraged, but because it’s the easiest to sell globally 24/7 for deleveraging other assets. There’s utility in accumulating it when times are good.”
Peter Schiff, a longtime critic of Bitcoin, questioned buyer interest at current levels.
“Other than @saylor, who’s buying the dip below $100k?” He also pointed to Bitcoin’s relationship with traditional markets.
“Bitcoin is down over 4% from where it traded when U.S. stocks closed on Friday. Given Bitcoin’s positive correlation with risk assets and negative correlation with gold, that indicates that stock futures will open lower and gold higher. Tonight’s session could be interesting.”
Meanwhile, Arthur Hayes, former BitMEX CEO and one of Bitcoin’s most vocal backers struck an optimistic tone. “Do you hear that? … it’s the sound of the money printers revving up to do their patriotic duty. This weakness shall pass and $BTC will leave no doubt as to its safe haven status.”
Despite the sell-off, Bitcoin remains up significantly year-to-date. However, the latest crypto market crash has reminded investors of the asset’s sensitivity to global uncertainty and leverage unwinding. Analysts say continued geopolitical risk could keep volatility high in the near term.
With markets on edge and traditional trading sessions about to resume, Bitcoin’s next move will likely depend on how broader markets react to developments out of the Middle East. For now, caution dominates, and capital is flowing out of crypto as quickly as it entered.
Also Read: Crypto Market Crash! Bitcoin nears 100K, ETH, XRP, SOL, DOGE Falling
