Bitcoin Price Drops Below $103K Amid Middle East Airstrikes

Price Drop Overview

Bitcoin plunged more than 3% on June 12, 2025, sliding under $103,000 in Asia-Pacific trading. This abrupt drop coincided with Israel’s airstrikes on Iran, which triggered risk-off flows across all major cryptocurrency markets.

Daily spot volumes spiked, with Binance reporting a 20% surge and Coinbase Pro surpassing $50B in turnover, per CoinGecko data. The breach of the 50-day moving average and a jump in realized volatility to 15% underscore the intensity of the sell-off.

Geopolitical Drivers

The primary catalyst was the escalation of conflict after Israeli airstrikes targeted strategic assets in Iran. Energy markets reacted, and Bitcoin, often seen as a high-beta asset, was not spared from the ensuing sell-off.

Bitcoin’s correlation with Brent crude briefly spiked to 0.45, reflecting concerns over supply disruptions. On-chain metrics from Glassnode also show a 4% uptick in exchange withdrawals, suggesting investors rushed to liquidate positions.

Market Reaction & Sentiment

Derivatives desks noted negative funding rates, with Binance’s 8-hour rate falling to -0.05%, indicating traders were incentivized to short Bitcoin amid the drop.

Social sentiment turned bearish: TheTie’s bullish index dropped to 32%, and Google Trends for “sell Bitcoin” hit a three-month peak, signaling a broader shift in trader psychology.

Order book analysis shows substantial buy orders near $100K, while liquidity thins above $104K, hinting at a potential support zone around $100K if volatility persists.

Expert Analysis

“Headline risk remains a key driver in crypto,” says Emily Parker, Chief Strategist at Chainalysis. “Without circuit breakers like in equities, Bitcoin can swing wildly on geopolitical news.”

Arthur Hayes, former BitMEX CEO, warns, “A failure to hold $100K could trigger deeper corrections, especially if macro uncertainties intensify.”

Future Outlook

Upcoming global events, including the U.S. Federal Reserve meeting on June 18, may dictate the next trend. A dovish tilt could restore risk appetite, while hawkish guidance might prolong selling pressure.

For now, watch $100K as critical support. Any rebound above $104K could attract short-covering, but sustained recovery may require clear de-escalation in the Middle East conflict.