The price of Bitcoin dropped approximately 3.3% in the last 24 hours, reaching a trading level of roughly $105,000 and briefly falling to $103,630—a low not seen since early June. The downward trend began last Thursday (December 7th) and escalated alongside a spike in regional tensions between Iran and Israel, which initiated a cycle of mutual missile attacks.
The potential conflict entered a new phase with a tweet from President Donald Trump suggesting that U.S. forces knew the location of Iran’s Supreme Leader, Ayatollah Ali Khamenei, and framing the situation as urging Iran towards “UNCONDITIONAL SURRENDER.”
Fears have grown that U.S.-backed Israel might consider eliminating the leader, a provocation viewed as escalating already volatile Middle East relations.
“This is classic volatility due to rising geopolitical pressures,” Mike Cahill, co-founder and CEO of blockchain infrastructure firm Douro Labs, told Decrypt.
He further commented: “However, Bitcoin dominance still remains high, showing us that even during these uncertain times, digital assets provide an alternative vehicle for investors.”
The broader market experienced similar caution, with the tech-heavy Nasdaq and S&P 500 indexes also falling shortly by about 0.7%. Ethereum saw a nearly 4.5% drop, while cryptocurrencies Solana, Cardano, and Dogecoin respectively dropped approximately 5%. This coincided with a widespread sell-off observed across risk-on assets, including major equity indexes.
John (last name omitted for clarity) Sapic, head of data and analytics at crypto merchant bank FRNT Financial, noted investors’ “risk aversion when there’s this level of uncertainty.” He also pointed out the likely driver is short-term investor concerns, lending support to the view that Bitcoin could be perceived as a safe-haven asset.
“That would give some credence to the view that this safe-haven thesis for Bitcoin has gained legitimacy over the past year,” Sapic wrote.
He explained: “What we are seeing here is a dip driven by shorter-term sellers looking to manage risk, get money off the table, and go into cash. For long-term holders and ardent Bitcoin advocates, such a dip can sometimes be viewed with the perspective of it being a necessary preparation for holding positions.”
