Bitcoin Price- Crypto Markets React to U.S.-Iran Conflict; Bitcoin Price Slumps
Bitcoin Price– Bitcoin’s (BTC) long dominance surged by 10% in just one week, signaling renewed trader interest. However, geopolitical unrest struck as news broke of the U.S. bombing Iran’s nuclear sites, causing widespread panic across cryptocurrency markets. At press time, BTC dropped sharply to around $100,809.
This sudden decline triggered multiple liquidation points below the $103,000 mark, sparking a cascade of long liquidations. According to recent data, over $127 million in long positions were liquidated within 24 hours, highlighting the market’s fragile state.
Signs Pointing to a Potential Deeper Correction
Glassnode’s MVRV Extreme Deviation Pricing Bands reveal that on June 21, BTC’s price fell below the +0.5σ band, sitting at $102,159 versus the band’s $102,770 threshold. Historically, such a breakdown signals a wider correction phase.
A move below this band historically hints at a broader correction.
In February 2025, a similar breach led to a six-week decline toward the mean band near $83,171. If history repeats, Bitcoin might revisit the $82,000–$83,000 range unless market sentiment rapidly improves.
Growing Buying Power Amid Risk
Despite the price drop, the Stablecoin Supply Ratio (SSR) decreased, indicating a rise in stablecoin market capitalization relative to Bitcoin’s market cap. This suggests increased buying power in the market. However, rising capital on the sidelines doesn’t guarantee an immediate uptrend, and downside risks remain.
On June 21, Bitcoin’s price drawdown from its all-time high was -8.75%. Historically, drawdowns in previous cycles have ranged from 20% to over 50% before recovery phases.
Earlier this year, Bitcoin faced a 24% correction, a reminder that strong rallies often include painful pullbacks. Analysts note that a clean breakout above the all-time high may be challenging, with continued volatility and possible dips below $100,000 before the next major move.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
