Bitcoin dropped sharply to $103,900 following reports of Israeli airstrikes on Tehran, signaling heightened geopolitical tensions with major market ramifications.
Explosions Reported in Tehran Amid Israeli Military Action
According to reports, Israeli forces launched a series of strikes on targets in Iran’s capital, with explosions confirmed in Tehran. This follows early speculation by Axios and further confirmation by Al-Jazeera. The operation is reportedly focused on dismantling Iran’s ballistic missile infrastructure.
Israeli President Benjamin Netanyahu declared the strikes will continue until Iran’s missile threat is neutralized.
This follows a recent International Atomic Energy Agency (IAEA) update stating Iran is not complying with uranium enrichment restrictions, the first such breach in two decades.
Bitcoin and Crypto Markets React Sharply
Bitcoin (BTC) is down over 4% in the past 24 hours, now trading around $103,482, reflecting a steep fall from earlier levels.
This marks one of the most significant single-day drops in recent months, driven by geopolitical fears and market uncertainty.
Other digital assets also saw declines as investors moved capital into safe havens such as gold and U.S. Treasuries, causing a temporary freeze in speculative appetite within crypto markets.
Traditional Markets Slide as Safe Havens Rally
U.S. and European stock futures have dipped by approximately 1.5%, signaling global risk-off sentiment. Investors are responding swiftly to fears of a broader Middle East conflict.
Meanwhile:
- Gold rose 0.75%, hitting $3,428 per ounce.
- Crude oil surged 9% to $74 per barrel amid fears of supply disruption.
- Bond yields slipped, with the 10-year Treasury yield falling to 4.32%.
- The U.S. dollar strengthened against the euro and pound, but weakened versus the yen and Swiss franc.
These moves indicate a classic flight-to-safety response amid growing fears of an extended conflict.
Global Uncertainty Ahead
With tensions between Israel and Iran escalating, markets are bracing for further volatility. While President Trump stated a preference for diplomacy, he acknowledged that continued strikes may lead to a large-scale conflict.
Investors should expect increased volatility in both crypto and traditional markets as headlines evolve and geopolitical developments unfold.