Bitcoin crashes amid Middle East tensions

Bitcoin plunged below $104K after Israel launched strikes on Iran's nuclear and military sites, shaking global markets.

Bitcoin dropped sharply to $103,162 as tensions in the Middle East escalated, with Israel launching attacks on Iranian nuclear and missile facilities, including targets in Tehran. Although the price has slightly recovered, it remains 2% lower compared to 24 hours ago.

Israeli Prime Minister Benjamin Netanyahu confirmed the strikes, stating they aim to eliminate the Iranian threat to Israel. He also warned that such military actions will continue if necessary.

This military response followed a report from the International Atomic Energy Agency (IAEA), revealing Iran’s failure to comply with uranium enrichment restrictions—a first in 20 years. The news sparked speculation about a potential strike, which U.S. President Donald Trump acknowledged could trigger a “massive conflict,” though he still hopes for a diplomatic resolution.

On the prediction market Polymarket, bettors previously saw less than a 30% chance of an Israeli attack by July. Initial reports came from Axios, and Al-Jazeera later confirmed explosions in Tehran.

Traditional financial markets also responded. European stock indices declined—the Euro Stoxx 50 fell 1.4%, and the FTSE 100 dropped 0.7%. U.S. futures lost about 1.4% across the board.

In contrast, safe-haven assets gained. Gold rose 1% to $3,436 per ounce, U.S. Treasury yields dropped slightly, and oil prices spiked up to 9% before settling 5.6% higher. Currency markets saw the dollar strengthen against the euro and pound but weaken against the yen and Swiss Franc.