Bitcoin experienced a significant drop, falling below $104,000 before beginning to recover. This downturn coincided with Israeli airstrikes on various targets in Iran, including its capital. The military actions aimed at Iran’s critical nuclear and missile sites have stirred up global market sentiment, causing many investors to withdraw from riskier assets.

As a result, the CoinDesk 20 index fell nearly 6% within a single day, reflecting the broader impact of geopolitical events on the cryptocurrency markets. Analysts suggest that while the immediate drop is concerning, Bitcoin may show resilience in the coming days as long-term investors remain committed.

Market observers will need to watch for any further developments in this geopolitical situation, as they could continue to sway market sentiment and Bitcoin’s price trajectory.