Will Bitcoin Slide Below $100,000 As U.S. – Iran Tensions Escalate?

Earlier this week, the prospects of Bitcoin bouncing back from the $104,000 price level were quite high.

However, a lot has happened during the weekend, especially the U.S escalating tensions with Iran, raising investor concerns.

The bullish optimism around Bitcoin may thus be forced to take a back sit. The rising geopolitical tensions underscored a less enticing investment landscape amid the rising risks of a spill over into a broader regional conflict.

While the situation was unfortunate especially for those caught in the crosshairs, it also raises questions as to how it will impact the investment landscape.

Bitcoin already slid lower on Saturday, during which price slid as low as $100,945, which was its lowest price point during the week.

The cryptocurrency responded with a bearish outcome on the first day of tensions between Israel and Iran. A similar outcome was observed after reports that the U.S attacked Iran.

Unexpected Bitcoin Sell Pressure Triggers Spike in Liquidations

There were heavy expectations of a Bitcoin bounce back near $104,000 and this may have encouraged many investors to execute long positions.

Unfortunately for them, the recent events dampened investor sentiment and as a result, many have been pulling liquidity out of risk-on assets.

Bitcoin long liquidations surged above $127 million in the last 24 hours as the cryptocurrency extended its slide.

The liquidation surge revealed that quite a large number of investors previously anticipated a recovery.

It is worth noting that sell pressure cooled down slightly above $100,000, meaning this key price point was putting up a strong defense.

An outcome that has largely been the result of heavy institutional buying from the likes of BlackRock and Strategy.

But will the same institutional and whale buyers maintain the same support to shield BTC from more downside? One thing is for sure.

The market sentiment has been cooling down with the surge in geopolitical tensions. Sentiment slid into fear at 42 points in the 24 hours, which was the lowest in months.

The declining market sentiment was clear indication that the geopolitical tensions have ono doubt had a negative impact on demand for crypto. Moreover, the escalating situation with the U.S getting involved, suggests that things could potentially get worse.

Berkshire Hathaway Fortifies its Cash Position

Berkshire Hathaway has been pulling out liquidity from a substantial amount of its investments so far in 2025. According to recent reports, the company currently has over $347 million in its cash pile.

Many analysts see this as the canary in the coal mine. In other words, the Berkshire Hathaway has been hoarding cash to deploy when the markets crash so they can buy back at heavily discounted prices.

While Berkshire’s approach highlights the classic definition of buy low-sell high, it also points to the expectations of more bearish activity. Especially with the rising war-related tensions.

This brings us to the possibility that Bitcoin could crash below $100,000. The worsening geopolitical tensions may lead to yet another major and unexpected crash.

It is thus possible that the situation may encourage investors to sit on the sidelines in anticipation of more downside. As well as the prospects of buying at discounted prices.

On the other hand, whale and institutional activity previously propped up BTC price. Aggressive buying from the institutional class could potentially allow Bitcoin to stick its neck above $100,000.

However, in the absence of strong demand, the potential for sub $100,000 prices will be quite high. Interestingly, Bitcoin exchange reserves have been cooling down aggressively but recently leveled out, confirming a clear impact on market sentiment.

The post Will Bitcoin Slide Below $100,000 As U.S. – Iran Tensions Escalate? appeared first on The Coin Republic.