Bitcoin Drops as Iran Plans Attack on U.S. Bases
Bitcoin (BTC) tumbled below the $99,000 mark on Monday after reports surfaced suggesting Iran is preparing to retaliate against the United States following recent military strikes. The sharp drop in crypto prices wiped out nearly all of the overnight recovery seen across digital assets.
Bitcoin plunged below $100K amid reports that Iran plans to attack U.S. bases in the Gulf, triggering widespread volatility across major cryptocurrencies in a risk-off market reaction.
Market Reaction
News of potential Iranian retaliation caused a swift sell-off. Bitcoin dropped from around $101,400 to just under $100,000, briefly touching a low near $98,500 before recovering slightly above the psychological support level. For deeper insights, see our Bitcoin price analysis and crypto trading strategies.
Ethereum and Altcoins Follow Suit
Other major cryptocurrencies mirrored Bitcoin’s decline. Ethereum (ETH) fell below $2,200, while XRP slipped back below $2.00 after showing strong momentum earlier in the week. Live prices can be tracked on CoinDesk.
Tensions and Uncertainty
The drop underscores growing investor nervousness as Middle East tensions flare. Analysts note that fear-driven sell-offs are increasingly common when global security risks spike. Read more about the geopolitical backdrop at Axios.
Why Bitcoin Acts Like a Risk Asset
Despite its “safe haven” label, Bitcoin behaves like a risk-on asset during geopolitical stress. Traders often liquidate positions to cover losses elsewhere, amplifying price swings.
What’s Next?
With Bitcoin hovering near $100,000, market participants are watching the $98,500 support level. A break below could signal further downside, while a rebound may restore bullish sentiment. Future developments from the White House and Gulf region will likely dictate short-term direction.
Sources
- Axios: White House Prepares for Iranian Retaliation
- CoinDesk: Live cryptocurrency price data
- Crypto Market Trackers: BTC and ETH 24h analysis