Bitcoin (BTC) Crashes Below $100K Support as Middle East Tensions Escalate

Bitcoin's bull run hits a wall—BTC plunges below the critical $100,000 psychological support level as geopolitical shocks rattle markets.

Why this hurts: The 'digital gold' narrative gets tested when traditional risk-off sentiment hammers crypto alongside stocks. Turns out whales panic-sell just like the rest of us.

Silver lining? Every 20%+ BTC drop since 2020 eventually became a buying opportunity. But try telling that to leveraged longs getting liquidated right now.

Bonus cynicism: Wall Street's 'institutional adoption' cheerleaders suspiciously quiet today—almost as if their custody solutions can't magic away macro risks.

TLDR

• Bitcoin price crashed below $100,000 support level due to escalating Iran-Israel conflict tensions
• Spot Bitcoin ETF inflows dropped 26% to $1.02 billion last week as investor sentiment weakened
• Analyst predicts Bitcoin could fall to $88,888 support level, with potential decline to $82,500
• US airstrikes on Iranian nuclear sites intensified geopolitical fears and crypto market selloff
• Bitcoin briefly dropped below $99,000 but recovered above $100,000 with increased trading volume

Bitcoin’s price decline shows no signs of stopping as geopolitical tensions between Iran and Israel continue to shake investor confidence. The world’s largest cryptocurrency has lost its key psychological support level at $100,000.

The selloff gained momentum after escalating Middle East conflicts spooked financial markets. Bitcoin had maintained the $100,000 level for an extended period before finally breaking down.

Crypto analyst Master Ananda warns that Bitcoin’s weekly chart shows bearish formations. The analyst believes the current price action continues the downtrend that began after bitcoin peaked at $111,900 on May 19, 2025.

Over $1 billion in crypto liquidations occurred in the past week. This massive liquidation event has put bears back in control of the market.

The next major support level sits at $88,888, more than 10% below the former $100,000 floor. If Bitcoin fails to hold this level, another 5% decline toward $82,500 could follow.

ETF Demand Weakens Under Pressure

Spot Bitcoin ETF inflows dropped sharply last week as geopolitical concerns mounted. The 12 US spot Bitcoin ETFs pulled in $1.02 billion, down 26% from the previous week’s $1.39 billion.

🚨 Bitcoin Spot ETFs: +$1.02B inflow this week

📅 Week ending June 20, 2025
➤ Weekly Net Inflow: $1.02B
➤ Cumulative Inflow: $46.66B
➤ Total Value Traded: $12.78B
➤ Total Net Assets: $126.54B

The institutional wave continues to build.#Bitcoin #ETF #BTC #CryptoNews #TradFi… pic.twitter.com/yNAMlYrVLb

— CryptoAI (@QCryptoAI) June 23, 2025

The week started strong with $412.2 million in Monday inflows. Tuesday saw $216.48 million, followed by $389.57 million on Wednesday.

Friday’s performance collapsed with only $6.37 million in total inflows. This represented a 98% drop from the previous three trading days’ average.

BlackRock’s IBIT fund recorded $46.91 million in inflows on Friday. However, Fidelity’s FBTC experienced a massive $440.55 million outflow that nearly wiped out all gains.

President Trump’s two-week deadline to decide on joining Israel’s military campaign against Iran created additional uncertainty. This geopolitical pressure drove investors away from risk assets like cryptocurrency.

Military Action Escalates Tensions

The situation intensified over the weekend when American forces launched coordinated airstrikes on Iran. The strikes targeted three key nuclear facilities on June 22.

President Trump’s full address to the nation from The WHITE House following the U.S. military strikes Iran. pic.twitter.com/6ghmPfXvmI

— America (@america) June 22, 2025

Iran responded with threats of retaliation and warned of “everlasting” consequences. The country also threatened to shut down the Strait of Hormuz, which handles 20% of global oil supply.

Oil traders now project prices could spike to $120-$130 per barrel. This could push US inflation back toward 5%, levels not seen since March 2023.

Bitcoin dropped over 2.8% to fall below $99,000 on June 22. ethereum suffered a larger 9% decline during the same period.

Other major cryptocurrencies also took heavy losses. Virtuals Protocol, Celestia, Aptos, and AB all fell more than 9%.

Despite the selloff, Bitcoin managed to recover above $100,000 by press time. The recovery came with a 75.8% spike in daily trading volume to $48.4 billion.

Derivatives activity also surged with volume jumping 67% to $136 billion. This suggests some traders closed positions during uncertainty but are now testing the waters again.

The analyst believes the entire price movement should resolve within two weeks. A recovery above $100,000 could lead to a retest of the upper trendline above $108,000.

Current market conditions reflect the broader shift from risk assets to SAFE havens like gold and defense stocks as geopolitical tensions remain elevated.