Bitcoin recovers above 100K after brief crash sparked by US airstrikes on Iran
Key Takeaways
- 1Bitcoin briefly fell below $100,000 after US and Israeli airstrikes on Iranian nuclear sites but quickly rebounded
- 2Over $1 billion in crypto long positions were liquidated in the aftermath, with Ethereum and Solana also seeing major losses
- 3Market signals suggest traders are pricing in a limited conflict, with oil and equities showing restrained moves
- 4Analysts caution that further escalation or a prolonged crisis could lead to deeper declines in crypto
As tensions surged across the Middle East this weekend, global markets reeled in response. Yet within hours, Bitcoin rebounded sharply, regaining ground above the $100,000 mark despite a steep selloff that rattled crypto investors.
Initial shockwaves from the US-led airstrikes on Iran’s nuclear facilities were sharp and swift. But the speed at which digital assets recovered has surprised some analysts, who note the crypto market’s resilience amid growing geopolitical uncertainty.
Bitcoin Sinks Then Recovers After US Iran Escalation
On June 22, Bitcoin fell nearly 4 percent, dropping to a multi-week low of $98,615 following US and Israeli airstrikes targeting key Iranian nuclear sites in Fordow, Natanz, and Isfahan. President Donald Trump confirmed the attacks, which reportedly involved more than 125 aircraft and bunker-buster munitions in an operation dubbed Midnight Hammer.
The initial market response was severe:
- Bitcoin dropped below $100,000 for the first time in months
- Ethereum fell over 10 percent, with Solana down about 5 percent
- More than $1 billion in crypto long positions were liquidated, according to CoinGlass
- The overall crypto market capitalization declined by 4.4 percent, to $3.25 trillion
Geopolitical Fears Meet Market Rationality
Iran retaliated with drone and missile attacks on Israeli cities and threatened US military bases in the Gulf. The country’s foreign minister also traveled to Moscow for emergency talks, while President Trump hinted at a pause in further US military action.
Despite these developments, oil prices remained contained, rising only 0.5 percent, and gold’s gains were modest, peaking at $3,398 before settling around $3,374. This muted response suggested investors might be pricing in a short-lived conflict, as noted by financial commentary outlet The Kobeissi Letter.
This market has all your answers:
— The Kobeissi Letter (@KobeissiLetter) June 22, 2025
Over the last 72 hours, the US bombed Iranian nuclear sites, Russia said countries are ready to supply Iran with nukes, and Iran's parliament voted to close the Strait of Hormuz.
Yet, stock market futures are down a mere -0.5% at the open and…
Crypto Volatility Normalizes as Risk Appetite Returns
By late Sunday, Bitcoin climbed back above $101,000, boosted by surging trading volumes. Daily trading jumped 75.8 percent to $48.4 billion, while derivatives activity grew by 67 percent, indicating that traders were returning after a wave of panic selling.
Still, the technical indicators remain mixed:
- Bitcoin is below its 10 and 20-day exponential moving averages, signaling short-term weakness
- The Relative Strength Index (RSI) is at 39, suggesting a weak but not oversold market
- Stochastic oscillators point to a possible short-term recovery, though overall momentum remains bearish
Analysts say much depends on whether diplomatic efforts can prevent further escalation. “If we start to see a softening in tensions in the Middle East, we should start to see a rebound in investor confidence,” said Pav Hundal, lead analyst at Swyftx.
CoinLaw’s Takeaway
Bitcoin’s sharp drop and equally quick recovery underscore how sensitive crypto markets are to geopolitical shocks, yet also how fast they adapt when fears subside. This weekend’s volatility is a reminder that crypto remains a high-risk, high-reward environment, particularly during global crises.
Whether Bitcoin retests resistance at $105,000 to $106,000 or falls toward $92,000 will hinge on Middle East developments, as well as whether institutional inflows via ETFs can maintain market confidence.
