Bitcoin saw a sharp decline late Thursday, falling over 4% after Israel launched a wave of airstrikes targeting Iranian military infrastructure near Tehran and Tabriz. The move, described by Israeli officials as a “preemptive response” to escalating nuclear threats, rattled global markets and triggered a swift retreat from risk assets—including crypto.
The world’s largest digital asset dropped from a daily high of $108,500 to $103,556, before climbing back above $104,000 according to CoinGecko data, as investors reacted to the sudden rise in Middle East tensions. The selloff mirrored broader market unease, with equity futures dipping and gold climbing in parallel—a classic sign of risk-off sentiment taking hold.
Speaking at a press briefing, Israeli Prime Minister Benjamin Netanyahu called Iran’s nuclear ambitions a “clear and present danger,” emphasizing that military actions would continue “for as many days as it takes to remove this threat.” The Israel Defense Forces echoed that stance, stating Iran has long financed terrorism across the region and is advancing toward nuclear capability.
Iranian officials have yet to issue a formal diplomatic reply, though state media confirmed explosions and disruptions to civilian air traffic in affected regions. As traders monitor potential retaliatory measures and the geopolitical fallout, markets remain on edge.
Investors See Dip as Short-Term Opportunity
The sudden escalation between Israel and Iran has reignited a long-standing debate among investors: do geopolitical flare-ups like this call for a strategic realignment, or are they just short-term tremors in fundamentally strong markets?
Kelvin Koh, co-founder and CIO at Spartan Capital, believes the latter. Speaking to reporters, he said that while the current situation has rattled risk assets, the broader outlook remains intact.
“Typically, these conflicts tend to be short-lived, as there is too much at stake for the region to escalate into a much wider and more protracted conflict involving multiple parties,” Koh noted.
He added that the current market dip may in fact offer a window of opportunity:
“We believe the market correction presents a good buying opportunity for risk assets that have strong fundamentals but have sold off hard as a result of the turmoil.”
The flight to safety was clear: gold jumped 1.7% to $2,414 an ounce, reaffirming its traditional role as a hedge against uncertainty. Meanwhile, U.S. equity futures slid, as traders braced for potential ripple effects across global markets. While crypto and equities pulled back, the investor playbook is increasingly pointing to patience and selectivity rather than panic.
Quick Facts
- Bitcoin fell over 4% after Israel’s airstrikes on Iran.
- BTC dropped from $108,500 to $103,556, per CoinGecko.
- Gold surged 1.7% to $2,414 amid risk-off sentiment.
- Israel cited Iran’s nuclear threat as justification for the strikes.
- Investors like Spartan Capital view the dip as a buying chance.
