Bitcoin Rebounds Above $100K After US Strikes Trigger Temporary Sell-off

Bitcoin (BTC) climbed about 3.5% to $102,762 at 07:00 UTC, almost completely recovering from Sunday’s low point after US attacks on Iran had roiled financial markets.

Military strikes

US warplanes and a submarine directly targeted Iran's nuclear facilities late Saturday – a military escalation which triggered a steep drop in crypto prices. Bitcoin fell below $100,000 for the first time since 8 May while other major coins such as Ether (ETH) witnessed a 10% dip. 

Liquidations rippled across the crypto market. Data from CoinGlass, a crypto analytics service, show more than $670 million wiped out since the first public reports of the mission as exchanges called in collateral posted by traders who had borrowed in the hope of leveraging their gains. Bitcoin traders took a hit of almost $240 million from the liquidations, while those invested in ETH saw $214 million erased on Sunday alone.

TV address

During primetime US television hours on Saturday evening, US President Donald Trump made a euphoric address to the nation about the “obliteration” of Iran’s nuclear installations. Bitcoin posted slim gains immediately after the speech before sliding as details unfolded during the following day about the extent and the efficacy of the strikes.

Trump’s message was tempered by language from his top military official Dan Caine who described the result as “severe damage and destruction,” prompting speculation over whether the overall objective of the mission had been achieved. Meanwhile, Trump’s social media communications late Sunday suggested he might be in favour of a change in regime in Iran, a move that could compound Iran’s outrage and insecurity.

The world watches

The world watched as Iran and Israel resumed missile attacks on Monday and digested reports that the Iranian parliament voted to close the Strait of Hormuz, a vital global energy conduit.