BTC/USD: Bitcoin Wipes Out 5% as Risk-Off Moves Dominate Markets amid War Tremors

OG crypto was seen pulling back under $103,000 per coin as traders shifted to risk-averse stance while Israel and Iran were spiraling into a very dangerous warfare.

👀 Crypto First Out the Door

• Bitcoin BTCUSD dropped 5% early Friday, sliding below $103,000, as risk assets were hit by a powerful wave of war-fueled market anxiety. The OG crypto, long dubbed “digital gold,” behaved more like a high-beta tech stock — retreating fast as headlines from the Middle East turned grim. Gold, on the other end, was heading higher.
• “No speculation today, boys.” traders, probably, as they rotated out of risk plays and into traditional safe havens. With Israel’s attack on Iran triggering fears of a broader conflict, Bitcoin bulls were quick to tap the brakes and lock in recent gains.
• The move deflated what had been a strong few weeks for crypto. If tensions escalate further, expect more volatility and less appetite for high-risk assets like the main coin and altcoins.

📣 Israel-Iran Conflict Escalates

• Israel launched a full-scale attack overnight on Iran’s nuclear infrastructure and top military brass, including the assassination of the commander of the Islamic Revolutionary Guard Corps. The pre-dawn raid involved 200 fighter jets, a clear signal this wasn’t a symbolic warning — it was a direct strike on Iran’s core power structure.
• Iran responded quickly, launching 100 drones at Israel, with officials in Tel Aviv saying many were already being intercepted outside national airspace.
• In a fiery message, Iran’s Supreme Leader Khamenei promised “severe punishment,” and markets worldwide began pricing in a longer and potentially more dangerous regional war.

🔥 What Does It Mean for Crypto?

• Despite claims of being a hedge in times of crisis, Bitcoin showed its vulnerability to broad market sentiment. The war narrative redirected capital flows to defensive assets — and away from the risk-on crypto complex.
• Analysts say Bitcoin’s selloff was compounded by recent strength, making it ripe for a correction when the headlines turned hostile. With no signs of de-escalation, traders may stay on the sidelines or move to cash and gold.
• But right now, the narrative is simple: crypto doesn’t like chaos unless it’s financial. This one’s military — and that’s a whole different beast.