Bitcoin’s price took a brief nosedive late Sunday, sinking to $98,974 after U.S. airstrikes hit Iranian nuclear sites, marking its lowest point since early May. However, by Monday morning in Asia, the world’s leading cryptocurrency had rebounded above $101,000. The swift recovery left traders pondering whether this was merely a blip or the harbinger of a new trend.
A Temporary Setback?
Arthur Hayes, co-founder of BitMEX, weighed in on the situation. On social media platform X, Hayes reassured his followers, asserting that this downturn is merely a temporary setback. “Weakness shall pass,” he optimistically proclaimed, predicting that Bitcoin will soon reassert its status as a safe haven asset. His hypothesis is rooted in the anticipation of central banks ramping up money printing, a scenario that could catalyze Bitcoin’s resurgence. “Do you hear that? … it’s the sound of the money printers revving up to do their patriotic duty,” Hayes quipped, highlighting the potential for such fiscal policies to stimulate upward momentum in cryptocurrency markets.
Geopolitical Ripples
The weekend’s geopolitical drama served as a catalyst for market jitters. U.S. military action against Iran spurred Bitcoin’s temporary dip below the six-figure mark. Yet, the subsequent buying frenzy demonstrates how quickly investor sentiment can pivot, with opportunistic traders seizing the moment to accumulate coins at perceived discounts. By the time Asian markets opened, Bitcoin had already regained its footing, illustrating the market’s resilience in the face of headline-driven volatility. This resilience was also highlighted in Bitcoin Rebounds as Markets Price in ‘Short-Lived’ Iran Conflict, which discusses the market’s ability to absorb geopolitical shocks.
The turmoil wasn’t restricted to Bitcoin alone. Altcoins took a hit over the past 12 hours, with most experiencing a 1.4% decline. This pullback shaved approximately $50 billion from the total cryptocurrency market cap, now sitting at $3.20 trillion, as per recent data. Nonetheless, experts remain optimistic, suggesting that once geopolitical tensions subside, altcoins could stage a comeback. Some analysts have noticed encouraging signs of strength in smaller tokens, even as Bitcoin consolidates.
Watching the Technicals
Traders are closely monitoring key technical levels, particularly the short-term realized price at $98,000 and the trend support at $102,000. The realized price often serves as a psychological floor, reflecting the average breakeven point for Bitcoin holders. Meanwhile, the $102,000 resistance has been a stubborn cap for rallies in recent weeks. The price’s ability to remain within this $98,000–$102,000 range is seen as pivotal, with potential for rapid upward movements. Yet, should Bitcoin breach the $98,000 level, it could signal a shift toward a more defensive posture among investors.
The current environment is a stark reminder of how external events, like geopolitical conflicts, can send ripples through the cryptocurrency market. However, the underlying fundamentals and broader macroeconomic trends continue to play a crucial role in shaping Bitcoin’s trajectory. As central banks around the world contemplate monetary expansion, the narrative of Bitcoin as a hedge against inflation and economic uncertainty gains traction. This theme is further explored in Bitcoin Remains Defiant Amid Escalating Middle East Conflict and Trade War Fears, which examines Bitcoin’s role as a financial refuge.
Looking Ahead
As we move further into 2025, the cryptocurrency landscape remains as dynamic as ever. The interplay between geopolitical developments and financial market reactions will likely keep traders on their toes. While the recent dip may have rattled some investors, the swift recovery suggests that Bitcoin’s allure as a digital safe haven endures.
Yet, questions linger. Will central banks’ monetary policies provide the expected boost, or will new geopolitical tremors unsettle markets once more? As always, Bitcoin’s journey is anything but predictable, offering both challenges and opportunities for those willing to navigate its tumultuous waters.
Source
This article is based on: Bitcoin Down But Not Out—Analyst Sees Recovery Ahead Amid Middle East War
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
