Bitcoin Dips Below $99,000 Amid U.S. Strikes on Iran

TLDR:

• Event: Bitcoin fell below $99,000 on June 22, 2025, following the U.S. airstrikes on Iran, which sent the broader crypto market into a liquidation mode, with in excess of $1 billion of positions liquidated over 24 hours, primarily from leveraged long positions.
• Context: Inflows into Spot Bitcoin ETFs halted, Bitcoin’s correlation with tech stocks increased, and geopolitical tensions heightened, such as Iran threatening to close the Strait of Hormuz, that added to the sell-off and challenged Bitcoin’s function as an inflation hedge.

Bitcoin plummeted sharply, briefly falling below $99,000 on June 22, 2025, to its May low, following United States strikes on Iran, which led to a swift sell-off of the crypto market. The fall, as quoted by CNBC and CoinDesk, is the final result of geopolitical and macroeconomic shocks that have shaken investors’ confidence.

The sell-off was prompted by rising tensions in the Middle East, where Iran threatened to close the Strait of Hormuz, a critical chokepoint for 20% of global oil supplies. JPMorgan strategists put the estimate of a full closure at taking oil prices to $130 a barrel, which would take U.S. inflation back to 5%, where it stood most recently in March 2023, when the Fed was still hiking rates. That threat has already prompted traders to reconsider interest rate paths, inspiring a rotation out of speculative assets like Bitcoin.

Bitcoin’s performance within the period reflects the shifting market realities of the cryptocurrency. Framed as an inflation hedge, Bitcoin has begun trading more like a high-beta tech stock. Crypto data company Kaiko reports correlation between Bitcoin and the technology-driven Nasdaq has surged in the last few weeks, reversing a multi-month low earlier this year when spot Bitcoin ETFs experienced massive inflows. The shift reflects Bitcoin being considered more of a risk asset and less of a safe-haven against inflation.

The technical glitch also fueled the fire. Bitcoin’s dip below $99,000 triggered offshore derivative forced selling on platforms like Binance and Bybit. Its peak Sunday saw over $1 billion of crypto longs being liquidated in 24 hours, with over 95% of the same representing long bets, which indicated the market’s overleveraging going into the weekend.

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