Bitcoin (BTC) slipped below the crucial $100,000 mark on Sunday for the first time since the beginning of May after the US struck key nuclear sites in Iran, significantly escalating the conflict and plunging markets into disarray. As a result, the flagship cryptocurrency fell to a low of $98,385 on Sunday before recovering to reclaim $100,000 and settle at $100,982. The airstrikes and escalation cratered the market, triggering widespread panic and leading to over $1 billion in liquidations. BTC is struggling during the ongoing session, with the price marginally up, trading around $101,252. Arthur Hayes Remains Confident About Bitcoin (BTC) Bitcoin’s (BTC) latest pullback does not have industry veteran Arthur Hayes worried. Hayes believes the decline will not impact market sentiment in the long term and is confident about the flagship cryptocurrency’s long-term strength. Hayes believes BTC’s recent price action and decline are temporary, and the broader economic backdrop could soon turn bullish for the asset. Hayes hinted that rising global pressure could lead to more liquidity injected into the financial system, benefiting BTC , and restoring it as a reliable store of value. “Do you hear that? It’s the sound of the money printers revving up to do their patriotic duty. This weakness shall pass, and BTC will leave no doubt as to its safe haven status.” The BitMex co-founder's comments came after Bitcoin briefly slipped below $100,000 over the weekend, falling to a low of $98,385 on Sunday as geopolitical tensions escalated. However, it rebounded to reclaim $100,000 and end the weekend at $100,982. BTC’s recent slide has seen it drop to its lowest levels since May and is part of a broader downturn in the crypto market. However, Bitcoin still shows signs of weakness, as pointed out by Rekt Capital on X, “Two weeks ago, Bitcoin's downside wicked almost -4% below $104400 before ultimately Weekly Closing above said level This week, Bitcoin is downside wicking -5% below $104400. Of course, Bitcoin could very well confirm a breakdown. But until the Weekly Close is in, it's not a confirmed breakdown just yet, and if the breakdown does become confirmed, then we won't be able to rule out a possible downside deviation until $104400 flips into resistance.” Spot Bitcoin ETF Demand Loses Steam Spot Bitcoin ETFs in the US experienced a sharp drop in inflows as investor sentiment turned bearish amid escalating geopolitical concerns thanks to US airstrikes on Iran. According to data from SoSoValue, spot Bitcoin ETFs saw $1.02 billion in inflows over the past week, a substantial decline from $1.39 billion the week prior. The previous week started well, with Bitcoin ETFs registering $412.2 million in inflows on Monday and $216.48 million on Tuesday. Wednesday saw $389.57 million in inflows, while Thursday was a holiday due to Juneteenth. However, inflows fell off a cliff on Friday with just $6.37 million, down 98% from the average of the previous three days. Friday’s activity was confined to BlackRock’s IBIT, which saw $46,91 million in inflows. However, this was offset by a $440.5 million outflow from Fidelity’s FBTC. Markets have been jittery since the US launched coordinated airstrikes on Iran, marking a turning point in the Israel-Iran conflict. Iran warned of consequences and shut down the Strait of Hormuz, a key passage used for transporting nearly 20% of the world’s oil supply. Analysts point out that oil prices could spike if the conflict continues. Crypto Market Register $1B In Liquidations Crypto market liquidations topped $1.3 billion on Sunday as investors reeled from the news that the US had conducted airstrikes at key installations in Iran. With traditional markets shut over the weekend, the crypto market was the first to bear the brunt of the escalating geopolitical situation. As a result, BTC dipped below $100,000 on Sunday, while other cryptocurrencies registered notable declines. Bitcoin (BTC) Price Analysis Bitcoin (BTC) fell below $100,000 for the first time since the beginning of May as market sentiment plunged after the US conducted air strikes on key Iranian nuclear sites. The airstrikes marked a significant escalation in the Middle East, triggering panic across the crypto market. As a result, liquidations topped $1 billion, impacting over 240,000 traders. However, despite Sunday’s stunning collapse, markets have recovered. While BTC fell to a low of $98,385 on Sunday, it recovered to reclaim $100,000 and settle at $100,982. Analysts believe markets are pricing in the conflict and do not expect a prolonged escalation in hostilities. Iran’s foreign minister also met with Russian officials in Moscow as diplomatic backchannels reopened following the airstrikes. BTC’s climb back above $100,000 comes alongside modest movement in gold prices, and a subdued reaction across oil and equity futures. According to analysts, traders are expecting a limited and contained conflict. The Kobeissi Letter posted on X that markets are expecting a short-lived war, stating, “Over the last 72 hours, the US bombed Iranian nuclear sites, Russia said countries are ready to supply Iran with nukes, and Iran's parliament voted to close the Strait of Hormuz. Yet, stock market futures are down a mere -0.5% at the open, and oil prices are up less than +2.5%. This is NOT a market that is pricing in a long-term conflict. If the market was pricing in JUST a closure of the Strait of Hormuz, oil prices would be at $120+. Objectively, the market is still expecting a short-lived war.” Pav Hundal, lead analyst at Swyftx, believes that if tensions in the Middle East decrease, investor confidence could rebound, allowing prices to recover. “We saw a lot of Twitch trading in the hours after the US attacked Iranian nuclear targets, and right now trade volumes remain elevated. If we start to see a softening in tensions in the Middle East, we should start to see a rebound in investor confidence, and the price should start to grind back up.” However, he cautioned that nobody knows what will happen next in the Middle East, creating further market industry. “Nobody, including Trump, knows what is going to happen next in the Middle East, and that just creates the kind of uncertainty that traders hate.” BTC registered a sharp drop on Thursday (June 12), falling nearly 3%, slipping below the 20-day SMA and settling at $105,826. Selling pressure intensified on Friday as BTC fell to a low of $102,854. However, it recovered from this level to register a marginal increase, reclaim $106,000, and settle at $106,106. Price action was mixed over the weekend as BTC registered a drop of 0.59% on Saturday before registering a marginal increase on Sunday to settle at $105,561. BTC raced to an intraday high of $108,939 on Monday. However, it could not stay at this level and settled at $106,808, ultimately registering an increase of 1.18%. Sentiment changed on Tuesday as BTC fell over 2%, slipping below the 20-day SMA and $105,000 to settle at $104,519. Source: TradingView BTC registered a marginal increase on Wednesday, rising 0.35% to $104,884. However, it was back in the red on Thursday, dropping 0.24% to $104,631. BTC reached an intraday high of $106,513 on Friday but lost momentum after reaching this level. As a result, it fell 1.19%, slipping below the 50-day SMA and settling at $103,888. Sellers retained control on Saturday as the price fell 1.17% to $102,180. BTC plunged below $100,000 on Sunday, falling to an intraday low of $98,385 as market sentiment worsened. However, it recovered to reclaim $100,000 and settle at $100,982. The current session sees BTC marginally up as buyers struggle to build momentum and push the price higher. A bearish MACD indicates that buyers are in control. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
