Bitcoin Iran attack crypto market sell-off

Bitcoin fell to its lowest level since May during the weekend, while the increase in tensions in the Middle East and the fears of renewed inflation triggered a strong sale through digital assets.

Bitcoin fell below the bar of $ 99,000 on Sunday – its lowest point in more than a month – while the cryptography market became the first to react to the climbing of geopolitical risk.

Bitcoin negotiates about $ 99,380, down more than 2% in the last 24 hours, while ether has dropped by 5% to less than $ 2,200. Solara,, XrpAnd mastiff also displayed clear losses, dragging the whole cryptographic complex deeply in the red.

The sale seems to be a combination of geopolitical shock and macroeconomic concern.

Iran would have threatened to block the Hormuz Strait – a vital shipping route that manages approximately 20% of the global oil supply. Jpmorgan warns that a complete closure could generate oil prices as high as $ 130 for a barrel.

A Macroelectroviaire Note research company That such a point could send us inflation around 5% – a level not seen since March 2023, when the Fed still actively increased rates.

This perspective makes the path of interest rates – and rotation of speculative assets like crypto reassess.

Although Bitcoin is often presented as an inflation coverage, it currently behaves more like a high beta technological stock. According to the Crypto Kaiko data supplierBitcoin correlation with the Nasdaq, heavy of technology, has climbed strongly in recent weeks, after reaching a lower several months earlier this year – a period that coincided with bailout in the Bitcoin ETF.

Institutional positioning also seems to have changed.

More than $ 1.04 billion sank in Bitcoin Spot ETF from Monday to Wednesday from last week, According to Coringlass data. But these entries collapsed before the weekend, with Zero Net Movement Thursday and only $ 6.4 million on Friday – coinciding with the president Donald Trump early Departure G7 and the announcement of a two -week review American options on Iran.

Technical ventilation has added fuel to sale.

Rinsing Research shows that the drop in bitcoin below $ 99,000 sparked the forced sale on offshore derivative platforms like Binance and Bybit. At its peak on Sunday, more than a billion dollars in cryptographic positions were liquidated during a period of 24 hours – with more than 95% from Longs Paris, stressing how the market was overexposed in the weekend.