The price of Bitcoin fell sharply over the weekend, plunging below the $99,000 mark for the first time since May. Rising conflict in the Middle East escalated tension, renewing inflation concerns that have sparked a broad selloff.
According to data by Coinglass, the flagship cryptocurrency dropped to its lowest in over a month, as more than $1.03 billion in leveraged positions were liquidated in 24 hours. The report revealed that the biggest liquidation recorded happened on HTX, involving a BTC/USDT position worth $35.45 million.
Ethereum the second most traded crypto asset, was the crypto most affected by absolute value, ahead of Bitcoin. The crypto asset recorded $373.75 million in liquidations. Amid the broad selloff, the global crypto market cap is reported to have fallen 1.18% to $3.12 trillion, while other altcoins such as Solana and Dogecoin, saw declines of 6-8%.
The dominance of losses on long positions suggests that traders anticipated a continuous price increase before the market reversed. Recall that Bitcoin touched a high of $111,886.41 in May, continuing its impressive rally that began in April 2025.
However, the ongoing conflict between Iran and Israel, which escalated significantly around June 13, 2025, with Israeli airstrikes on Iranian nuclear and military facilities, has introduced notable volatility into cryptocurrency markets. This has seen investors move to traditional safe-haven assets like gold, U.S. Treasuries, and the U.S. dollar, as cryptocurrencies are perceived as high-risk assets during the geopolitical uncertainty. This behavior aligns with historical trends, such as the 2022 Russia-Ukraine conflict, where BTC fell 12%.
The conflict’s effect on crypto prices depends on its duration and scope. A prolonged war could spike oil prices, increase inflation, and further depress risk assets like crypto. If the U.S. enters the conflict, analysts predict BTC could drop 10–20% short term.
It is worth noting that the United States president Donald Trump, the president who returned to the White House in January promising to be a “peacemaker”, has taken a dramatic step to insert the US into the conflict between Iran and Israel. In an address to the nation from the White House just over two hours after announcing on social media that American forces had struck three nuclear sites in Iran, Trump said the operation had been a “spectacular success”. He expressed hope that his move would open the door to a more lasting peace where Iran no longer had the potential to become a nuclear power.
While short-term volatility persists, some analysts suggest Bitcoin could eventually benefit if war-related inflation revives its narrative as a hedge against fiat debasement. By late Sunday, digital assets had started to recover. Bitcoin was trading just under $101,000, down just 1% over the past 24 hours, while ether has pared some losses, off 2.5% to around $2,200. However, tighter monetary policies due to rising energy costs could limit this upside.
Conclusion
The Iran-Israel conflict has driven short-term crypto price declines due to risk aversion, with Bitcoin showing relative resilience compared to altcoins. The market’s future trajectory hinges on the conflict’s escalation, oil market disruptions, and global monetary policy responses. Investors are advised to monitor geopolitical developments, diversify portfolios, and employ risk management strategies like stop-loss orders.
