Bitcoin Falls Below $104K as Israel Bombs Tehran, Global Markets React

Bitcoin (BTC) has plunged over 4% in the past 24 hours, dropping to $103,900 following Israeli airstrikes on Tehran, Iran’s capital. The escalation in Middle East tensions has triggered significant volatility across global crypto and financial markets.

Axios first reported the Israeli military action, citing unnamed sources, with Al-Jazeera confirming explosions in Tehran. Israeli President Benjamin Netanyahu later announced that Israel had targeted Iran’s nuclear and ballistic missile facilities and vowed continued operations until the threat is neutralized.

The strike followed a declaration from the International Atomic Energy Agency (IAEA) that Iran had violated enriched uranium limits for the first time in nearly 20 years. The move sharply escalated geopolitical risk, prompting widespread market reaction.

President Donald Trump stated the U.S. is seeking a diplomatic solution but warned that a full-scale conflict with Iran remains a possibility. Meanwhile, betting markets like Polymarket had placed the chances of an Israeli strike before July at under 30%, underscoring how unexpected the operation was.

Traditional financial markets have responded swiftly. U.S. and European stock futures fell around 1.5%, while safe-haven assets surged. Gold prices rose 0.75% to $3,428 per ounce, and oil prices jumped 9% to $74 per barrel. U.S. 10-year Treasury yields dropped two basis points to 4.32%, reflecting rising demand for low-risk assets.

Currency markets also showed mixed reactions. The U.S. dollar strengthened against the euro and British pound but weakened versus the yen and Swiss franc, reflecting investor flight to safety amid heightened geopolitical uncertainty.

As tensions rise, traders are closely watching Bitcoin and other risk assets for further declines, with continued geopolitical instability likely to drive market direction in the coming days.