Bitcoin Bounces Back to $104K After Brief Drop, as Iran’s Failed Attack Eases Tensions

Bitcoin Bounces Back After Iran-US Tensions Cause Price Drop

On June 23, Bitcoin’s price briefly dropped below $100,000 around 4 p.m. UTC, following news that Iran had fired missiles at a US air base in Qatar. Fortunately, no one was hurt. Just three hours later, Bitcoin recovered and climbed back up to nearly $104,000.

At the time of writing, Bitcoin was trading at about $103,801—up 4.5% in the past 24 hours. Earlier that day, it had dipped to around $99,500.

What Happened?

Iran launched a small missile attack on the Al Udeid Air Base. This came two days after the US bombed three Iranian nuclear sites. US officials said Iran gave a warning beforehand, allowing troops to take cover. President Donald Trump called Iran’s response “very weak” and saw it as a chance to reduce tensions.

How Bitcoin Reacted

At first, the news caused panic, and Bitcoin briefly dropped below $100,000. But it quickly bounced back as traders calmed down and started buying again. By 7 p.m. UTC, it was trading just under $104,000.

What’s Next for Bitcoin?

Even with the recent ups and downs, Bitcoin has mostly stayed above $100,000. Analysts say the price is now being supported by steady investment in Bitcoin exchange-traded funds (ETFs). These funds are helping to create a price "floor."

According to Bitfinex Alpha, Bitcoin has strong support around $94,000–$95,000 and faces resistance near $105,000–$110,000. Unless more money flows into the market or a big news event happens, prices are likely to stay in this range for now.

Derivatives and Market Health

Futures and options data show that the market isn’t too overheated. Total open interest is around $96 billion, which is lower than last week’s $114 billion peak. This suggests some risk has been taken out of the market.

Also, funding rates—what traders pay to hold positions—are now at healthier levels. This means investors are taking longer-term positions instead of making quick bets. But if too many people start using leverage again, it could lead to sharp sell-offs.

ETFs Are Key

The flow of money into ETFs will likely shape where Bitcoin goes next. If money keeps flowing in, especially during US trading hours, Bitcoin could test $110,000 again. But if money starts leaving ETFs and new global tensions emerge, the price could drop back toward $95,000.