Ethereum, the second-largest cryptocurrency, slid nearly 8% early Sunday, reacting to news that the United States had launched strikes on Iranian nuclear facilities. While Bitcoin also dipped briefly, it quickly found stability around the $101,000 mark. With traditional financial markets closed, crypto became the only real-time measure for investor sentiment.
How US-Iran Conflict Affected Ethereum Prices
The crypto market showed immediate reaction to military updates from the Middle East. Even after attracting institutions, Ethereum dropped as low as $2,200 following news that US bombers had targeted three Iranian nuclear sites—Fordow, Natanz, and Isfahan. The airstrikes, announced by former President Donald Trump, were said to have included bombs dropped on Fordow, one of Iran’s most sensitive nuclear enrichment sites.
Ether’s decline was likely a combination of technical triggers and fear-based selling. Markets were already on edge due to speculation about potential strikes, and when confirmation arrived, it led to a wave of liquidations. According to Coinglass data, over $679 million worth of crypto positions were wiped out within 24 hours—most of them long positions.
Unlike Ether, Bitcoin quickly stabilized after a brief dip. This divergence has drawn attention to the different investor profiles and market dynamics of the two assets.
Bitcoin Remains Steady: Why Is It Reacting Differently?
Bitcoin briefly dipped below $101,000 but recovered quickly, showing resilience that has become increasingly familiar in times of political uncertainty. Analysts believe that Bitcoin’s role as a perceived store of value contributes to its stability when traditional markets are closed.
“Bitcoin tends to lead the market out of a bounce during geopolitical stress,” said Cosmo Jiang, general partner at Pantera Capital. That theory seems to hold up once again. While altcoins like Ethereum react more directly to panic-driven selling, Bitcoin seems to benefit from flight-to-quality behavior in such moments.
This behavior pattern aligns with how some institutional investors treat Bitcoin—as a hedge against both inflation and geopolitical instability.
Massive Liquidation Hits Crypto Market: $360M Wiped in Hours
The chart shows a major liquidation spike around June 21, with long positions taking the largest hit—exceeding $360 million in a short window.
Short positions remained minimal, indicating the selloff was driven mostly by overleveraged bullish bets.
Despite sharp liquidations, Bitcoin’s price (yellow line) held relatively steady near the $100,000 mark, highlighting market resilience.
Four Undeniable Forces That Could Push Bitcoin Higher
Despite weekend jitters, four key macro trends continue to support Bitcoin’s bullish case for summer 2025:
1. Rising Global Liquidity
Central banks have been adding money to the global financial system. The M2 money supply reached $108.4 trillion in April—levels not seen since Bitcoin’s 2021 surge. Typically, Bitcoin price lags these liquidity expansions by one fiscal quarter.
More liquidity means more capital looking for returns, and riskier assets like Bitcoin often benefit. Even if central banks eventually tighten again, some of that new capital remains permanently in crypto.
2. Dollar Weakness
The US dollar index has fallen 10% this year, marking its worst six-month performance since 1986. Investors are rotating out of dollars and into assets with better long-term prospects. In regions experiencing currency depreciation, Bitcoin acts as a digital alternative to preserve value.
3. Falling Treasury Yields
Benchmark 10-year Treasury yields have dropped from 4.81% to the low 4% range. When bonds yield less, capital seeks alternative returns. Every major Bitcoin rally since 2017 has followed periods of declining yields.
4. Reduced Bitcoin Supply Post-Halving
The April 2024 halving cut daily issuance to 450 BTC. At the same time, demand from ETFs and institutions has remained high. This imbalance gives long-term holders more influence over price direction, especially if they continue to hold rather than sell.
These four trends are creating a backdrop where Bitcoin has room to grow—despite short-term noise.
Michael Saylor’s $21 Million Forecast: Delusion or Foresight?
Michael Saylor, chairman of Strategy (formerly MicroStrategy), stunned the crypto world by predicting that Bitcoin would reach $21 million per coin by the year 2046. Speaking at BTC Prague 2025, he cited widespread adoption and shifting geopolitical trends as core reasons for his confidence.
Saylor pointed to recent political developments like the US government’s endorsement of Bitcoin and Trump’s pro-Bitcoin stance as key factors. According to him, the idea of America becoming a “Bitcoin superpower” was unthinkable just a year ago.
While many dismissed the prediction as overly optimistic, it’s clear that Saylor is betting on continued institutional adoption, regulatory clarity, and the structural limitations of Bitcoin’s supply.
Self-Custody and Cultural Shifts in the Bitcoin Community
A notable trend emerging from BTC Prague 2025 was the growing emphasis on self-custody. More than 5,000 attendees at the conference showed deep interest in wallet technology, sovereignty, and “be your own bank” principles.
While figures like Michael Saylor once discouraged individual custody in favor of bank-held assets, he reversed course last year after community backlash. Today, both corporate treasuries and grassroots users are exploring ways to retain direct control over their assets.
Companies like Trezor, one of the event’s main sponsors, reported strong demand for hardware wallets and open-source tools. The mood reflects a broader shift—users want control, privacy, and protection from centralized risks.
Final Thoughts
The crypto market remains deeply intertwined with global events. Ether’s recent drop wasn’t just about technicals—it reflected real-time reactions to international conflict. At the same time, Bitcoin’s stability and long-term outlook remain supported by macro forces, political tailwinds, and a maturing investor base.
While short-term volatility is always possible, the overall trend suggests continued adoption, deeper integration into financial systems, and growing cultural relevance.
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