Bitcoin Drops 4% After Israeli Airstrikes on Iran; Ethereum Sheds Nearly 10%.
Bitcoin tumbled over 4% to $104,000 in early Friday trading, as reports of Israeli airstrikes on Iran rattled global markets and triggered a sharp sell-off in cryptocurrencies. Ethereum took a deeper hit, sliding 9.6% to $2,493 amid rising geopolitical tensions in the Middle East.
Other major cryptocurrencies also declined: Solana dropped 9.62%, XRP fell 5.42%, and BNB slipped 2.65%. The total cryptocurrency market capitalization fell more than 5%, now hovering around $3.35 trillion, according to data from CoinSwitch Markets Desk.
The downturn followed Bitcoin’s recent surge to an all-time high above $111,000, driven by institutional interest and corporate adoption.
“Heightened geopolitical risk triggered a broad risk-off sentiment in global markets, including crypto,” CoinSwitch noted. “Escalating tensions in the Middle East are pushing investors toward safer assets.”
The market jitters extended beyond crypto. Global equities and currency markets slipped, while crude oil prices surged over 5%, fueling concerns about inflation. Rising energy costs could prompt the US Federal Reserve to delay or reconsider rate cuts, further dampening risk appetite.
Trump Media’s Bitcoin Strategy
Meanwhile, Trump Media & Technology Group announced a $2.5 billion capital raise to purchase Bitcoin, joining a growing list of firms adding crypto to their treasuries. Companies are increasingly holding Bitcoin as a hedge against inflation or as a strategic bet on digital assets.
What Drives Bitcoin’s Volatility?
Bitcoin’s sharp swings are nothing new. The cryptocurrency’s price is influenced by a mix of factors: low liquidity compared to traditional markets, speculative investor sentiment, regulatory uncertainty, and its fixed supply of 21 million coins.
Large holders, or “whales,” can significantly move the market with just a few trades. In addition, news headlines—like political tensions or regulatory moves—can quickly sway investor mood and trigger rapid buying or selling.
Despite volatility, Bitcoin continues to attract both institutional and retail interest, cementing its place in modern finance even amid global uncertainty.
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