Bitcoin fell below $100,000 on Sunday for the first time in over a month after U.S. airstrikes hit three key nuclear sites in Iran. The selloff came just hours after the U.S. bombed these facilities on Saturday. However, a WSJ report says that they are soon planning to put an end to the war.
As Israel continued to strike targets inside Iran, including a prison holding political detainees and access points at the Fordow enrichment complex, traders grew uneasy.
The U.N. atomic agency chief warned that the U.S. attacks on Fordow likely caused very significant damage. That uncertainty pushed investors to sell off crypto positions.
Political Shifts and Crypto Gains
Last year, after Donald Trump won the 2024 U.S. presidential election, Bitcoin and other digital assets enjoyed a sharp rally. Investors hoped a Trump administration would be friendlier to crypto.
When Trump took office in January, he signed executive orders aimed at helping the industry. In February, Bitcoin hit all-time highs above $100,000.
Now, as Trump signals he may back changes in Iran’s leadership, markets weigh the risk of further conflict against the promise of pro-crypto policies.
Lessons from the Russia-Ukraine Conflict
History shows that wars can roil crypto markets. In 2022, Russia’s full-scale invasion of Ukraine sent Bitcoin tumbling nearly 30%. Traders fled riskier assets as uncertainty spiked.
Yet within weeks, crypto recovered as Ukraine embraced digital currencies for fundraising and payments. That dual effect, initial selloff followed by renewed interest, highlighted crypto’s role both as a risky asset and an alternative financial tool in times of crisis.
Bitcoin’s Price Actions and Rising Volatility
The Iran-Israel conflict underscores how quickly global events can influence digital tokens. Some view crypto as a hedge against political risk, while others see it as too unstable to rely on in a crisis.
The drop below $100,000 shows that when headline risks escalate, Bitcoin behaves more like a speculative asset. Traders may seek traditional safe havens such as gold or government bonds until the situation stabilises.
At press time, Bitcoin is trading at $101,345.4 and is down by 1.25% in the last 24 hours. The global market cap is at $2.01 trillion. The 24-hour trading volume is up by 32.75%.
Regulatory Backdrop and Future Prospects
Amid these geopolitical shifts, regulators are watching closely. Bills like the GENIUS Act could reshape how stablecoins and exchanges operate in the United States.
Stricter rules may be aimed at consumer protection, but they could also push some activity into less regulated “dark” corners of the market, as warned by industry analysts. The clash between oversight and innovation will play out as global politics add new layers of uncertainty.
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