Bitcoin Sinks Below $100K as Geopolitical Tensions and Oil Jitters Rattle Markets

Bitcoin slipped beneath the psychologically significant $100,000 mark on June 22, rattled by intensifying geopolitical risks and a broader risk-off move across global markets. The flagship cryptocurrency dropped to as low as $99,700 before recovering slightly, reflecting growing investor anxiety driven by fears of oil supply disruption and its ripple effects on inflation and interest rates.

The primary trigger behind this sharp move appears to be escalating tensions in the Middle East, particularly concerns that Iran could obstruct oil shipments through the Strait of Hormuz. The narrow waterway is one of the world’s most crucial maritime passages, accounting for roughly 20% of global oil flows. Following U.S. airstrikes on Iranian military assets, over 50 oil tankers reportedly rushed to exit the region, raising alarms across commodities markets. Crude oil prices surged in response, and analysts from JPMorgan warned that if oil prices spike to the $120–$130 range, it could push U.S. inflation back toward the 5% threshold.

This inflationary threat has rekindled concerns that the U.S. Federal Reserve may have to keep interest rates elevated for longer than previously expected. For Bitcoin, which is often seen as a macro-sensitive asset, this has undermined its recent bullish momentum. Investors have grown increasingly cautious, reducing exposure to riskier assets including crypto. Ethereum (ETH) fell by over 8%, XRP declined 6.2%, and Solana (SOL) dropped more than 6% as the sell-off widened across the crypto space.

The broader context reinforces how Bitcoin’s correlation with macroeconomic factors—particularly commodities and inflation expectations—remains intact. Over the past year, Bitcoin has shown a tendency to trade like a tech stock, rising during periods of low rates and risk-on sentiment. Now, with the prospect of rising energy costs and sticky inflation, market dynamics are once again shifting.

Despite the downturn, some analysts believe the dip may offer a buying opportunity for long-term investors, especially if Bitcoin can consolidate above key support levels. However, until geopolitical uncertainties ease and inflation pressures stabilize, Bitcoin may remain vulnerable to further swings. The next few weeks are likely to be crucial in determining whether the cryptocurrency can regain its footing or continue sliding toward deeper support zones.