Recent geopolitical tensions, including US air strikes on Iranian nuclear sites and threats to close the Strait of Hormuz, have heightened risks and impacted global markets.

Oil prices rose sharply, while stock futures edged lower. The crypto market also reacted, with Bitcoin briefly dipping below $100,000 over the weekend.

$313M Liquidated as Bitcoin Falls

Bitcoin fell below the key support as tensions between the US and Iran escalated. The decline followed US air strikes on Iranian nuclear sites and subsequent Iranian threats to close the Strait of Hormuz—a key oil shipping route.

The drop triggered liquidations of long positions, pushing Bitcoin to $98,000 before a swift recovery brought it back above $101,500.

Simon Peters, crypto analyst at eToro, noted: "As the price began falling on the back of the escalating geopolitical tensions, approximately $313 million worth of traders' long positions were liquidated, exacerbating the price fall."

Looking ahead, traders are monitoring a busy week of US economic data, including PMI figures today, GDP numbers on Thursday, and the Fed’s preferred inflation gauge—the PCE index—on Friday.

Additionally, Fed Chair Jerome Powell’s testimony during the Semiannual Monetary Policy Report to Congress on Tuesday and Wednesday may influence market sentiment, alongside ongoing geopolitical developments.

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BTCUSD Holds $100K Support Despite Dips

From a technical perspective, BTCUSD is currently trading above the $100K level, indicating that this remains a significant support point for the cryptocurrency. However, on shorter timeframes, the price dipped and traded below this level earlier, which could signal a potential downside move.

If this decline continues, buyer interest may wane, leading the price to seek its next support level. A strong bullish reversal pattern near that area could then attract buyers and help push the price back upward.

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Facing Geopolitical Uncertainty, but Institutional Interest Remains Strong

Despite the geopolitical uncertainties, institutional interest in Bitcoin persists. Recent inflows into spot Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust, amounting to about $81 million, contrast with broader market outflows. Surveys show that over half of institutional investors allocate at least 10% of their portfolios to digital assets.

Regulatory developments, including the establishment of the SEC’s Crypto Task Force and changes in enforcement actions, suggest a move toward clearer frameworks. Meanwhile, the Federal Reserve’s current rate stance and possible future easing are factors market participants are considering. Geopolitical risks and upcoming trade deadlines may continue to affect Bitcoin and other risk assets.