Recent events have led to sharp price fluctuations in Bitcoin, spurred by geopolitical tensions causing significant liquidations in the cryptocurrency market.
Bitcoin Falls to $98.2k
On June 23, 2025, Bitcoin briefly dropped below the $100,000 mark, reaching $98.2k in response to Iran's threat to close the Strait of Hormuz. This event triggered over $1 billion in margin liquidations in the market.
Market Volatility Causes
According to Wu Blockchain, the sudden escalation in geopolitical tensions led to massive sell-offs in cryptocurrency markets, exacerbated by thin liquidity. During such periods, small fluctuations can cause significant price changes.
Institutional Investors' Strategies
The quick rebound above $100,000 indicates strong buying pressure likely from institutional investors. A 2023 study found that 70% of Bitcoin's price stability post-dip correlates with large wallet activity.
The uncertainty in the macroeconomic environment and the significance of the $100,000 level for Bitcoin highlight the need for dynamic risk management by both retail and institutional investors.
