The cryptocurrency market shows signs of resilience after experiencing some turbulence earlier on Friday amid escalating tensions between Israel and Iran. Bitcoin, which had dipped below $102,600, managed a quick rebound to around $106,000. However, as reports of new airstrikes targeting Iran emerged in U.S. trading hours, Bitcoin’s price drifted lower, settling at approximately $105,200 — down about 1.6% over the past 24 hours. Despite this dip, Bitcoin remains less than 6% away from its all-time high, keeping investors cautiously optimistic.
Meanwhile, the CoinDesk 20 — an index of the top 20 cryptocurrencies by market cap (excluding memecoins and stablecoins) — declined by 4.4% in the same period. Leading the losses were tokens like Ethereum, Avalanche, and Toncoin, which fell between 6% and 8%.
Crypto-related stocks are also feeling the pressure. Major players such as Bitcoin miners MARA Holdings and Riot Platforms dropped 5% and 4%, respectively. One notable bright spot is Circle, the stablecoin issuer that continues to benefit from its recent IPO, with its stock climbing 13%. The buzz around retail giants Amazon and Walmart exploring stablecoins has added fuel to Circle’s momentum.
Traditional markets seem relatively unfazed by the geopolitical storm. Gold prices have risen 1.3%, hinting at potential new highs, while the S&P 500 and Nasdaq indices only dipped slightly, each down about 0.4%.
Looking ahead, market analysts are cautiously watching Bitcoin’s recent bounce. Crypto trader Skew pointed out that Bitcoin’s current recovery shows strength, though follow-through remains uncertain. With Bitcoin still closely tied to traditional markets amid heightened geopolitical risks, traders are expected to stay cautious over the weekend.
On a longer-term horizon, some experts warn of a possible deeper correction. Markus Thielen, founder of 10x Research, noted that Bitcoin falling below $106,000 could indicate a failed breakout, suggesting traders should wait for more favorable entry points. Thielen highlights the critical support zone between $100,000 and $101,000 — a break below this range could signal a return to consolidation similar to last summer.
Additionally, John Glover, CIO at Bitcoin lender Ledn, suggests Bitcoin may be entering a corrective phase from its recent highs, with a potential dip toward $88,000 to $93,000 before resuming its upward trend. Glover believes that, after this correction, Bitcoin could target new highs around $130,000.
As the markets navigate these turbulent waters, investors will likely remain vigilant, balancing optimism with caution until clearer signals emerge.
