Bitcoin (BTC) has reclaimed its coveted $100,000 level to stabilize price following a volatile weekend during which the US conducted airstrikes on Iran’s key nuclear facilities. The event triggered a sharp market-wide sell-off, resulting in over $1 billion in daily liquidations and causing BTC to drop below the six-figure mark for the first time in 45 days.
On Saturday night, US President Donald Trump announced airstrikes on three Iranian nuclear development sites in Fordow, Natanz, and Isfahan. The operation carried out in coordination with Israel involved more than 125 aircraft and bunker-buster munitions.
BTC Dropped Below $100,000 as Iran Threatens to Close Strait of Hormuz
Iran responded with missile and drone attacks on Israeli cities, even threatening to strike US military bases across the Middle East. The country’s parliament also called on the government to close the Strait of Hormuz, a major shipping route that handles 20% of all global oil trade. This led traders to brace for a spike in oil and gold prices when markets reopen on Monday.
Just hours after the US bombing, over $1 billion in various crypto positions were liquidated, with a majority of the selloffs affecting Bitcoin futures long positions. BTC fell to $99,300, dropping by 4.5%, while Ether (ETH), the second-largest cryptocurrency by market capitalization, fell 2.3% to $2,237, bringing an end to a six-week consolidation pattern. Overall, the total crypto market cap tanked about 7% during the weekend.
Despite the escalation, markets managed to stabilize quickly, with gold only marginally rising, hitting $3,398 before falling to $3,374. Meanwhile, oil is holding its gains near $76 per barrel after a 4% spike on Sunday, only to end the day up just 0.5%.
Bitcoin Price Rebounds as US-Iran War Scenario De-escalates
The Kobeissi Letter wrote in an X post that oil remains far below levels historically associated with Strait of Hormuz disruptions. The global capital markets commentary noted that the market is still expecting a “short-lived war”.
The crypto market, which experienced massive selloffs during the height of the weekend’s attacks, rebounded on Monday on the back of stable gold and oil prices as traders returned when risk appetite increased.
Bitcoin regained its lost footing and surged above $101,400, showing much-needed resilience amid brewing geopolitical tensions. As for altcoins, ETH, XRP, and Solana (SOL) managed to claw back their losses. While the price movement suggests that investors’ confidence is making a comeback, the asset class remains sensitive to global developments.
The decision to close the Strait of Hormuz remains with Iran’s leadership, but despite past threats to do so, the country has never managed to successfully shut the choke point for global oil shipments. The Trump administration has maintained its position that the US is looking forward to a peace deal between Iran, Israel, and itself, but on the promise that the Islamic Republic will not develop or possess nuclear weapons.
Earlier in June, the International Atomic Energy Agency (IAEA), a United Nations-backed nuclear watchdog, reported that its inspectors had been unable to determine whether Iran was complying with the prohibitions on developing a nuclear warhead – as per the terms of the 2015 US-Iran nuclear deal, from which the US withdrew under the first Trump administration.
IAEA chief Rafael Mariano Grossi stated that the agency has serious concerns about the country failing to cooperate with its inspectors since at least 2019, not providing the UN agency with credible explanations for the presence of 400 kilogrammes of “man-made” uranium particles in three “undeclared” locations.
Israel began attacking Iran shortly after the agency publicized its allegations, and the Islamic Republic retaliated. The US entered the conflict after Trump authorized airstrikes on the nuclear sites. However, the President has called for peace, demanding that Tehran end its nuclear weapons program and “end the war”. Trump also floated the idea of a regime change in Iran, but top cabinet officials insist that the US is not at war with Iran.
US and Iran Open Diplomatic Channels as Investor Confidence Returns to the Crypto Market
Iran’s foreign minister flew to Moscow on Sunday for emergency talks with President Vladimir Putin to reopen diplomatic backchannels. Meanwhile, Trump has paused any further US military action and called on China to stop Iran from closing the Strait and disrupting global oil flows. A final decision on next steps in the conflict could come in the following weeks as investors remain in a wait-and-see mode.
Pav Hundal, lead analyst at Swyftx, told crypto media outlet Decrypt that softened tensions in the Middle East could result in crypto prices climbing back up as investor confidence returns. He also noted that the lack of commentary on what is going to happen next in the region has created a level of uncertainty in the market, and the events that unfolded on Sunday serve as a stark reminder that crypto is an emerging market and volatility is still a core part of its nature.
At the time of writing, BTC is trading at $101,556, down 1.13% in the past 24 hours.
