Bitcoin Price Analysis: BTC Registers Sharp Drop As Middle East Crisis Worsens

Bitcoin (BTC) made a promising start to the week, surging to an intraday high of $108,944 on Monday. However, the worsening situation in the Middle East prompted a sharp decline as markets turned bearish. As a result, the flagship cryptocurrency dropped to $106,806. 

BTC is down almost 1% during the ongoing session, trading around $105,897. Despite overwhelming selling pressure, the price has stayed above $105,000. 

Strategy Announces Latest Bitcoin Purchase 

Michael Saylor’s Strategy has announced that it purchased 10,100 BTC for approximately $1.05 billion at an average acquisition price of around $104,080 per coin. Strategy co-founder and executive chairman Michael Saylor announced the news in a post on X, stating, 

“Strategy has acquired 10,100 BTC for ~$1.05 billion at ~$104,080 per bitcoin and has achieved a BTC Yield of 19.1% YTD 2025. As of 6/15/2025, we hodl 592,100 acquired for ~$41.84 billion at ~$70,666 per bitcoin.”

The latest Bitcoin purchase takes Strategy’s total holdings to a staggering 592,100 BTC, further cementing its place as the largest corporate holder of Bitcoin. Strategy has doubled down on its “buy and hold” strategy, using proceeds from equity and debt financing instead of its at-the-market programs. Notably, it did not sell any stock in the days leading up to its latest acquisition. Strategy’s management is convinced about BTC’s long-term value proposition. However, they acknowledge the risks associated with a highly concentrated treasury allocation. Strategy’s filing warns that the absence of diversification increases the firm’s exposure to BTC’s short-term fluctuations and volatility. 

“The concentration of our assets in Bitcoin limits our ability to mitigate risk that could otherwise be achieved by holding a more diversified portfolio.”

Bank Of America Ranks Bitcoin Among The Most Disruptive Innovations 

Bank of America has called Bitcoin one of the most disruptive innovations, signaling its potential to shape the global financial ecosystem. The observations were made in a long-term chart outlining 1,000 years of technological and scientific disruptions. The chart highlighted Bitcoin as one of the most consequential innovations in history. The chart highlights key breakthroughs from the invention of the printing press to quantum computing and everything in between. 

Bank of America Global Research stated that Bitcoin stands out for its challenge to traditional financial systems by introducing a decentralized alternative to traditional fiat currencies. Its inception is also regarded as the catalyst for the rapid growth of the crypto industry. The chart put Bitcoin alongside innovations like the World Wide Web, microprocessors, and electric vehicles. 

Bitcoin ETFs Continue Inflow Streak 

US spot Bitcoin ETFs recorded inflows of $412 million on Monday, extending their positive streak to six days despite escalating tensions in the Middle East. The latest inflows take the cumulative inflows to $46 billion. The latest streak of inflows began on June 9 and has attracted a total of $1.8 billion, according to data from SoSoValue. Inflows have persisted despite rising geopolitical tensions across the world, including a renewed conflict between Israel and Iran. 

As expected, BlackRock’s iShares Bitcoin Trust (IBIT) led inflows, recording over $266 million in net inflows on Monday, with its total accumulation crossing $50 billion. This was followed by Fidelity with inflows of $82 million, and Grayscale, which recorded just 12.84 million in inflows. Vincent Liu, Chief Investment Officer of Kronos Research, stated, 

“Despite rising tensions between Israel and Iran, institutions are looking past short-term volatility and focusing on long-term positioning. Steady Bitcoin ETF inflows reflect growing trust in BTC’s resilience, accessibility, and role as a hedge in a shifting macro environment.”

Trump Media To Hold Bitcoin (BTC) And Ethereum (ETH) 

Trump Media & Technology Group’s ETF will hold BTC and ETH and combine them into a single tradable asset. The company, founded by the Trump family, said it intended to launch the ETF with a quarter of the assets in ETH, with the rest in BTC. It added that the launch is planned for “later this year.” Trump Media & Technology Group initially planned to offer a Bitcoin-only ETF, announcing in May that it was raising funds to acquire Bitcoin. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) registered a sharp drop on Monday as it fell from an intraday high of $108,944 Monday. However, sentiment soured after it emerged that President Trump requested the National Security Council convene in the White House Situation Room. Trump left the G7 early, posting a chilling warning on his Truth Social handle, urging people to evacuate Tehran. Press Secretary Karoline Leavitt confirmed President Trump’s early departure from the summit in Canada, stating, 

“Much was accomplished, but because of what’s going on in the Middle East, President Trump will be leaving tonight after dinner with Heads of State.”

However, a Bitfinex Alpha report predicts a quick rebound for BTC and the broader crypto market, provided global tensions don’t escalate further. BTC fell over 7% following the Israel-Iran conflict, with the net taker volume also registering a sharp drop to negative $197 million, suggesting widespread panic. Bitfinex analysts stated that such declines in net taker volumes often indicate capitulation, a pattern seen in previous market bottoms. The crypto fear and greed index also slid into “fear” territory. The Bitfinex Alpha report stated, 

“This selling, however, combined with a spike in liquidations, resembles past capitulation—style setups that often mark local bottoms. If Bitcoin can hold the $102,000–$103,000 zone, it may suggest that selling pressure is being absorbed and that the market could be primed for recovery—assuming geopolitical risks don’t intensify further.”

BTC registered a sharp drop on Thursday (June 5) as bearish sentiment increased after it dipped below $105,000. As a result, it fell 3%, dropping to a low of $100,424 before settling at $101,614. The price recovered on Friday, rising nearly 3% and settling at $104,378. Price action remained positive over the weekend as BTC rose 1.15% on Saturday and registered a marginal increase on Sunday to reclaim $105,000 and settle at $105,784. BTC surged on Monday as it started the previous week on a bullish note, rising over 4% to cross $110,000 and settle at $110,251. The price fell to a low of $108,335 on Tuesday. However, it recovered from this level to register a marginal increase and settle at $110,253.

Source: TradingView

BTC lost momentum on Wednesday, falling 1.42% to $108,687. Bearish sentiment intensified on Thursday as the price fell nearly 3% to $105,828. BTC plunged to an intraday low of $102,832 on Friday as selling pressure intensified. However, it rebounded from this level to register a marginal increase and settle at $106,106. The price was back in the red on Saturday, dropping 0.59% to $105,482, but registered a marginal rise on Sunday to end the weekend at $105,562. BTC raced to an intraday high of $108,944 on Monday as it started the week on a bullish note. However, it lost momentum after reaching this level and settled at $106,806, ultimately registering an increase of 1.18%. The current session sees BTC down over 1%, trading around $105,000. Buyers must keep the price above $105,000. A drop below this level could drive BTC toward $100,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.