itcoin">Bitcoin fell sharply alongside broader cryptocurrency markets following reports of military strikes involving Iran, as investors rushed to reduce risk exposure. The leading cryptocurrency dropped over 8% in 24 hours, breaching critical support levels and dragging major altcoins down with it. This marks the most significant single-day decline since May, with traders attributing the sell-off to classic “risk-off” behaviour during geopolitical crises.
Market analysts note that itcoin">Bitcoin’s correlation with traditional risk assets has increased in recent months, making it vulnerable to macroeconomic shocks. “Crypto markets are acting as a barometer for global risk appetite,” said Marcus Thielen, head of research at 10x Research. “The Iran situation creates uncertainty about energy markets and potential economic fallout, which tends to hurt speculative assets first.” The sell-off liquidated over $300 million in leveraged crypto positions within hours.
While some view this as a knee-jerk reaction that may present buying opportunities, others warn of potential further downside if tensions escalate. Technical analysts are watching the $60,000 support level for itcoin">Bitcoin, which if broken could open the door to $55,000. The market’s ability to recover quickly may depend on whether the geopolitical situation stabilizes or worsens in coming days. Institutional flows into spot itcoin">Bitcoin ETFs, which had shown renewed strength earlier this week, will also be crucial in determining whether this proves a temporary setback or start of a more prolonged correction.
