The recent correction in Bitcoin prices amid rising tensions between Israel and Iran sparks interest in historical trends. Analysis shows that sharp price declines are often followed by significant recoveries.
Bitcoin Price Drop During COVID-19
In March 2020, Bitcoin lost 63% of its value due to global panic caused by the COVID-19 pandemic, dropping to $3,800. Despite this, it subsequently surged over 1,720%, reaching an all-time high of $65,000 by April 2021. This recovery was made possible through institutional investments and increasing interest in digital assets.
Impact of the Yen Carry Trade Crash
In late 2023, the correction in Bitcoin prices was tied to sell-offs caused by liquidity stress from rising Japanese yields. Bitcoin fell nearly 30%, dipping from $68,000 to $48,000. However, shortly after, the asset rebounded 124%, climbing to $108,652 by early 2025.
Predictions Amid Iran-Israel Conflict
In June 2025, amid escalating conflict between Iran and Israel, Bitcoin corrected by 7% from its peak of $108,652, falling below $101,000. Analysis shows that similar declines amid geopolitical instability can create favorable buying conditions. Historical examples suggest that fear in the market often leads to price recovery.
In summary, history shows that external events significantly impact Bitcoin prices, creating both risks and opportunities. Current events may also lead to changes, reflecting patterns from previous cycles.
