Bitcoin slumped below the $100,000 support levels for the first time since May following heightened geopolitical tensions in the Middle East triggered by a direct U.S. military strike on Iran’s nuclear infrastructure.
The world’s largest cryptocurrency dropped as much as 3.8% to $98,904 as of 5:05 p.m. Nigerian time on Sunday, the lowest level in over a month. Ether, the second-largest digital asset, declined by 10% to approximately $2,157, also its lowest intraday level since May 8.
The sharp selloff was largely attributed to investor reaction following former President Donald Trump’s announcement that U.S. bombers had struck three major Iranian nuclear sites, Fordow, Natanz, and Isfahan.
Trump, who is seeking re-election, confirmed the attack on Saturday, stating that a “payload of bombs” had been deployed on Fordow, a key uranium enrichment site.
The news sparked widespread risk aversion across digital-asset markets, leading to significant long and short position liquidations. Data compiled by Coinglass showed that total crypto liquidations exceeded $1 billion in the past 24 hours, including $915 million in long positions and $109 million in short positions.
“Markets are nervously eying ongoing geopolitical developments,” said Caroline Mauron, co-founder of Orbit Markets, a provider of crypto derivatives liquidity. “The focus will likely shift to oil and broader risk assets when traditional markets reopen.”
Cosmo Jiang, general partner at Pantera Capital Management, said the uncertainty surrounding potential U.S. military action throughout the week had weighed heavily on the market.
“The overhang of whether the U.S. would strike Iran caused a selloff through the week and into the weekend,” Jiang noted.
Jiang added that Bitcoin has historically acted as a barometer during periods of geopolitical instability and tends to lead market recovery when conditions begin to stabilize.
The development comes amid increasing global concerns about Iran’s nuclear ambitions, with international watchdogs repeatedly raising alarms over the country’s activities at Fordow and Natanz. Trump’s statement directly linked the bombings to preventing potential nuclear weapons development.
With traditional financial markets closed over the weekend, volatility in the crypto market was further amplified by thin liquidity and elevated fear indices.
Market participants are expected to closely monitor responses from Iranian authorities and global powers as potential escalation in the region may lead to further market disruption.
