Bitcoin Falls Below $100K – Bitcoin and the broader cryptocurrency market took a hit on Monday as geopolitical tensions intensified in the Middle East, prompting investors to shift towards traditional safe haven assets like the U.S. dollar.
Why Bitcoin falls below $100K?
Bitcoin dropped 1.3% to $101,501.80 by 01:35 ET (05:35 GMT) after having briefly fallen to $99,000 on Sunday. This marks a significant drop for the world’s largest cryptocurrency, breaking below its recent support range of $103,000 to $108,000, which had held throughout most of June. Despite the sharp weekend decline, Bitcoin managed to stay above the crucial $100,000 psychological level.
The sell-off came in the wake of a major military development: the United States launched airstrikes on three of Iran’s nuclear sites over the weekend, escalating fears of a broader conflict in the Middle East. Former President Donald Trump, now back in the spotlight, claimed that the strikes had successfully destroyed the targeted facilities. However, these claims have yet to be independently verified.
The International Atomic Energy Agency (IAEA), the UN’s nuclear watchdog, reported no immediate increase in radiation levels near the bombed areas, suggesting that the actual damage may have been limited or that the sites were inactive at the time.
Despite this, Iran reacted strongly, condemning the U.S. attack and threatening severe retaliation. Reports indicate that Tehran is considering blocking the Strait of Hormuz, a critical maritime passage that handles a significant portion of the world’s oil supply to Asia and Europe. Any disruption there could trigger a global energy crisis.
This geopolitical risk pushed crude oil prices sharply higher on Monday, raising concerns about renewed energy-driven inflation. In turn, such inflationary pressure could force central banks, particularly the Federal Reserve, to maintain higher interest rates for a longer period, something that usually weighs on speculative assets like cryptocurrencies.
Crypto Market Reacts Cautiously as Sentiment Weakens
The broader cryptocurrency market mirrored Bitcoin’s weakness, with major altcoins sliding lower amid the shift in risk sentiment.
- Ethereum (ETH) dropped 1.9% to $2,247.59
- XRP fell 2.5% to $2.0299
- Cardano (ADA) and Solana (SOL) both lost over 1%
Among meme coins:
- Dogecoin (DOGE) slipped 1.3%
- $TRUMP token lost 1.6%, falling to $8.706
The declines reflect broader investor uncertainty, as market participants await more economic signals. All eyes this week are on Federal Reserve Chair Jerome Powell, who is scheduled to testify before Congress starting Tuesday. His comments will likely influence expectations around U.S. interest rate policy for the remainder of 2025.
While cryptocurrencies are often seen as independent of traditional financial systems, they remain highly sensitive to shifts in market sentiment, especially when driven by macroeconomic factors or geopolitical developments.
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