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Bitcoin Crashed Below $100,000 Amid US Airstrikes on Iran and Market Sell-Off
In a dramatic turn of events, Bitcoin, the market’s leading cryptocurrency, plunged below the $100,000 threshold for the first time in over a month. This significant drop occurred on Sunday, closely following the US airstrikes on Iran, as Middle Eastern conflicts intensify. The crash saw Bitcoin’s value decrease by approximately 4%, falling to around $99,300. Simultaneously, the broader cryptocurrency market experienced a sharp downturn, with Ethereum (ETH) seeing an even steeper fall of nearly 10%.
Geopolitical Unrest and Tariff Troubles Impact Crypto Values
The downturn in cryptocurrency values happened just hours after the United States targeted three key nuclear sites in Iran. This military action came after a United Nations report suggested Iran was not complying with international bans on developing military nuclear capabilities. In retaliation, Israel also launched strikes against Iran, escalating tensions further. Amid these developments, President Donald Trump took to social media, declaring the moment a historic one for the US, Israel, and the world, urging Iran to end the war.
This drop below the psychologically significant $100,000 mark followed a year of substantial gains for Bitcoin. After President Trump’s executive orders aimed at bolstering the cryptocurrency sector earlier in the year, Bitcoin had soared to all-time highs above $100,000 in February. However, the market mirrored declines seen across broader financial markets, especially after Trump’s severe tariff announcements in April, which previously drove Bitcoin down to nearly $75,000 – its lowest point in 2025.
Despite this volatility, Bitcoin had rebounded significantly in May, hitting new highs as Wall Street investors poured back into the cryptocurrency via US exchange-traded funds (ETFs). By late Sunday, signs of recovery were evident, with Bitcoin trading at about $101,300, down just 1% over the previous day, while Ethereum pared losses to around $2,200.
Forced Liquidations Exacerbate Bitcoin Sell-Off
The geopolitical unrest has not only affected the cryptocurrency market but also threatened broader financial stability. CNBC reported that Iran might block the Strait of Hormuz, a vital global oil shipping route. JPMorgan analysts have warned that such a blockade could push oil prices up to $130 per barrel, potentially driving US inflation towards 5%—a rate not seen since March 2023.
Despite its reputation as an inflation hedge, Bitcoin’s recent behavior has aligned more closely with high-beta tech stocks. According to data from crypto provider Kaiko, Bitcoin’s correlation with the tech-heavy Nasdaq has sharply increased, especially following the surge in Bitcoin ETF inflows. Institutional investment patterns shifted as well, with over $1.04 billion flowing into spot Bitcoin ETFs early in the week, though this momentum slowed considerably by the weekend.
Moreover, technical market factors have also played a role in the heightened sell-off. Research from CoinGlass indicated that Bitcoin’s dip below $99,000 triggered significant forced liquidations across various offshore derivatives platforms, including Binance and Bybit. Over $1 billion in crypto positions were liquidated within 24 hours during this period, with the vast majority stemming from long positions, highlighting the market’s overexposure and sensitivity to geopolitical shocks.
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