Bitcoin Falls Below $104K Amid Israel-Iran Conflict, Renewing Questions About Its Role as a Safe Haven

Bitcoin dipped sharply under $104,000 on June 13 following reports that Israel had launched airstrikes on key military and nuclear infrastructure in Iran, escalating long-standing regional tensions. The price of Bitcoin dropped nearly 4% within hours of the news, hitting an intraday low of around $103,274 before recovering slightly to hover near the $105,000 mark. The drop disrupted a recent pattern of stability for the world’s largest cryptocurrency and highlighted its ongoing sensitivity to macro and geopolitical shocks.

The broader crypto market also took a significant hit. Ethereum fell over 7%, XRP declined by more than 5%, and Solana plunged nearly 9% as traders offloaded risk assets across the board. The CoinDesk 20 Index, which tracks a basket of major digital assets, dropped roughly 4.4%. According to data from CoinGlass, over $1 billion in leveraged crypto positions were liquidated during the downturn, including more than $427 million in Bitcoin longs. This sharp liquidation wave added to the selling pressure and exposed vulnerabilities in the highly-leveraged corners of the digital asset space.

At the same time, traditional safe havens surged. Gold, often viewed as the ultimate risk-off asset, climbed about 1% as investors sought shelter from market volatility. Oil prices spiked by over 9% amid fears that the military escalation could disrupt supply routes or even draw in neighboring countries. U.S. Treasury yields declined as bond prices rose, and demand increased for currencies traditionally considered safe, such as the U.S. dollar, Japanese yen, and Swiss franc. Meanwhile, global equity futures also turned red, with S&P 500 and Nasdaq contracts both slipping more than 1.4% during Asian and European trading hours.

These developments have reignited the debate about Bitcoin’s true role in the global financial system—particularly its status as a potential store of value in times of crisis. While proponents have long referred to Bitcoin as “digital gold,” the asset has repeatedly shown that it behaves more like a risk-on investment in periods of acute stress. Analysts point to the lack of sustained buying interest during geopolitical uncertainty as evidence that Bitcoin has yet to mature into a consistent hedge against global instability.

Technical analysts are now focused on Bitcoin’s next moves. Key support is expected around the $100,000–$101,000 range, with resistance near the 50-day moving average close to $105,000. A break below psychological support at $100K could open the door to a deeper correction, possibly toward the $93,000 level, according to some chartists. However, if bulls manage to regain momentum, a push back toward $110K is not out of the question—particularly if global tensions de-escalate and broader market sentiment improves.

Institutional sentiment remains mixed. While the sell-off triggered short-term outflows from crypto-focused funds, several Bitcoin ETFs still saw modest inflows, suggesting that long-term investors may be using the dip as a buying opportunity. On-chain metrics also remain constructive, with large holders continuing to accumulate and exchange outflows indicating a trend toward long-term storage rather than active trading.

As markets digest the fallout from the Israel-Iran exchange, traders and analysts alike are bracing for continued volatility. The unfolding geopolitical crisis serves as a reminder that even decentralized assets are not immune to global turbulence—and that in moments of high uncertainty, old-world havens like gold and bonds often retain the upper hand.