Bitcoin (BTC) Price: War Fears Send Bitcoin Tumbling as Israel Strikes Iran

TLDR

Bitcoin dropped 2.8% to $103,053 after Israel launched airstrikes on Iran before recovering to $104,370 Long positions worth $427.84 million were liquidated in the past 24 hours due to the sudden price decline Bitcoin had reached $110,265 on Tuesday, near its all-time high of $111,940 from May 22 Crypto analyst suggests every 1% increase in global liquidity could drive Bitcoin up 20% Global Liquidity Index hit record highs in April, coinciding with Bitcoin’s 40% rally since then

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Bitcoin dropped sharply to $103,053 after Israel launched airstrikes on Iran on Thursday night. The cryptocurrency fell 2.8% from $106,042 within 90 minutes of the attacks.

Bitcoin (BTC) Price

Explosions rocked Tehran at 22:50 UTC before Israel claimed responsibility for the strikes. Bitcoin has since recovered slightly to $104,370 at the time of writing.

The sudden drop caught many traders unprepared. Long positions worth $427.84 million were liquidated over the past 24 hours according to CoinGlass data.

Source: Coinglass

Just days earlier on Tuesday, Bitcoin had climbed to $110,265. This price level sits just below Bitcoin’s all-time high of $111,940 set on May 22.

The geopolitical tensions created uncertainty in financial markets. Gold and oil prices rose 1.44% and 11% respectively over the past 24 hours.

Bitcoin entrepreneur Anthony Pompliano noted this pattern has happened before. When Iran launched rockets at Israel in October, Bitcoin initially fell 3%.

“Bitcoin ended up outperforming the other two over the first 48 hours in that situation,” Pompliano said. He believes Bitcoin could reverse its current underperformance relative to gold and oil.

Israeli Prime Minister Benjamin Netanyahu said the strikes targeted Iran’s nuclear program. He stated the “operation will continue for as many days as it takes to remove this threat.”

Iran’s supreme leader responded that Israel “should anticipate a severe punishment.” The country reportedly retaliated by launching over 100 drones.

US Secretary of State Marco Rubio confirmed the US had no part in the strikes.

Liquidity Analysis Points to Higher Prices

Real Vision’s Jamie Coutts sees a different picture for Bitcoin’s future price direction. His Global Liquidity Index broke to fresh all-time highs on April 10.

Bitcoin has rallied 40% since April 10 which was when my global liquidity aggregate (GLI) after 3 years broke out to new all time highs on the back of a plummeting US dollar. Since then the aggregate is up 2%. Bitcoin's Q2 rally is entirely consistent with liquidity regimes of… pic.twitter.com/rMTcqq3ftM

— Jamie Coutts CMT (@Jamie1Coutts) June 12, 2025

Since that breakout, Bitcoin has rallied about 40%. Coutts argues this performance tracks with the strongest expansion in global liquidity on record.

His analysis suggests every 1% increase in global liquidity should drive Bitcoin up 20%. The Global Liquidity Index has risen 2% since April while Bitcoin gained 40%.

Coutts builds his indicator using central bank balance sheets and money supply data. He combines figures from major economies including the US Treasury General Account and Federal Reserve facilities.

Buying Opportunity Emerges

Some Bitcoin supporters view the current price drop as a buying opportunity. Jan3 founder Samson Mow directed a message to GameStop CEO Ryan Cohen about purchasing Bitcoin.

“This is where you buy it when it feels scary,” Mow said. “If it dips lower and you feel even more nervous, buy even more.”

GameStop used part of its recent $1.5 billion raise to purchase 4,710 Bitcoin worth $513 million in May. The purchase was made when Bitcoin traded at higher levels.

The cryptocurrency remains close to the psychologically important $100,000 level. Traders continue watching for signs of whether Bitcoin will break below this threshold or recover toward recent highs.

Bitcoin currently trades at $104,370 according to CoinMarketCap data.

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