AsianFin -- Since the beginning of 2025, Bitcoin has been on a rollercoaster ride—forging new highs above $105,000 in early June before tumbling below $99,000 amid rising geopolitical and inflation worries.
On June 6, Bitcoin dropped more than 3.5%, falling under $101,000. It later rebounded to approximately $104,200 by June 20, before plunging to its lowest point in over a month—below $99,000—after escalating Middle East tensions triggered massive crypto liquidation.
展开剩余85%Over the past 18 months, strong structural forces have buoyed Bitcoin’s rally. The April 2024 halving tightened supply while both retail and institutional demand surged. Long-term holders now control record amounts of Bitcoin, and wallets holding over 10 BTC continue rising. Recent inflows into institutional products like BlackRock’s IBIT ETF—raising over $560 million last week—also underscore growing demand.
Still, volatility remains a key theme. From June 13 to 22, a wave of panic selling following Israel’s airstrikes on Iran triggered over $1 billion in liquidations, tanking Bitcoin from $112,000 to $98,200 in a flash crash. U.S.-based Bitcoin ETFs saw six consecutive days of outflows, totaling $644 million.
The tide turned on June 23 after a ceasefire, sparking a sharp V-shaped recovery. Bitcoin surged 5% and reclaimed the $106,000 level, liquidating close to $500 million in short positions.
But market watchers caution caution. Whale activity and ETF demand have eased by roughly 50%, and new investor interest is softening. On-chain metrics show key support levels at $92,000 for trader cost base and a deeper floor at $81,000.
Aside from crypto, the Middle East turmoil also rippled through other markets. Oil prices spiked on fears of disrupted supply via the Strait of Hormuz, while gold rallied above $3,300 per ounce as investors flocked to safe havens. Regional equities in Israel and Iran were hit hard, and U.S. markets—particularly tech and risk-sensitive Nasdaq stocks—experienced increased volatility.
So, what’s next?
The next Bitcoin halving is still months away, but supply constraints remain a bullish driver. Institutional participation, especially through ETFs, continues to lend support.
Policy developments are promising: Texas has set up a $10 million Bitcoin reserve, and U.S. regulators like the FHFA are exploring crypto in mortgage eligibility—steps that could foster long-term mainstream adoption.
Bitcoin’s emerging role as a “wartime financial asset” has drawn attention. From Iran to Gaza, crypto played crucial roles when traditional infrastructure faltered—Ukraine’s early war-time crypto donations alone totaled over $127 million.
The next Bitcoin halving is still months away, but supply constraints remain a bullish driver. Institutional participation, especially through ETFs, continues to lend support.
Policy developments are promising: Texas has set up a $10 million Bitcoin reserve, and U.S. regulators like the FHFA are exploring crypto in mortgage eligibility—steps that could foster long-term mainstream adoption.
Bitcoin’s emerging role as a “wartime financial asset” has drawn attention. From Iran to Gaza, crypto played crucial roles when traditional infrastructure faltered—Ukraine’s early war-time crypto donations alone totaled over $127 million.
Still, macro risks loom large. A slowdown in global growth or a pivot toward tighter monetary policy could pressure risk assets like Bitcoin. And as interest rates rise, some capital may rotate back into traditional markets.
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