Bitcoin (BitfinexUSD) declined to below $64,000 on Saturday after news emerged that Israel and the United States had launched attacks against Iran. The move deepens a losing run that has persisted for five months and highlights a pronounced change in market perception of the largest cryptocurrency.
Where Bitcoin was once widely discussed in the same breath as traditional safe-haven assets such as gold, recent price behavior has prompted market participants to reclassify it as a higher-volatility, risk-sensitive instrument - one that now often tracks more like a growth stock than a refuge in periods of geopolitical stress.
Over recent months the divergence between Bitcoin and gold has become stark. Gold has rallied as demand for shelter increased, while Bitcoin has struggled to keep pace. The largest crypto by market capitalization is now trading more than 50% below the peak near $125,000 seen in October 2025.
Losses were not isolated to Bitcoin. Major tokens including ETH/USD and Solana also retreated on the news, extending a pattern in which geopolitical developments initially pressure crypto markets before they find a footing and potentially recover. That pattern has been observed in previous episodes, though market commentators note the current conflict does not appear likely to be resolved quickly.
Given the potential for broader escalation - including the risk that Iran might retaliate against neighboring countries that host U.S. military bases - some analysts see a scenario where the downturn could be more prolonged. In that context, a near-term technical target for Bitcoin is the $60,000 area. That level acted as the point of recovery following the last significant sell-off, making it an important support to monitor.
Precious metals markets will be watched closely for signs of a flight to safety. Because many gold instruments do not trade through the weekend, traders and investors are expected to wait until Asian markets reopen on Sunday night to observe how gold responds to the latest developments. The common expectation among market participants is that gold will move higher as risk appetite falls, with prices potentially gapping up at the open and, depending on momentum, testing or exceeding prior record highs.
Summary of market context and immediate considerations:
- Bitcoin fell below $64,000 on Saturday following reports of coordinated attacks on Iran by Israel and the United States.
- The cryptocurrency has been in a five-month losing streak and is over 50% off the October 2025 high near $125,000.
- Other major crypto assets, including ETH/USD and Solana, declined alongside Bitcoin.
- Near-term technical support for Bitcoin is identified at approximately $60,000, a level that previously marked a rebound after the last large decline.
- Gold's reaction will be observed when Asian markets reopen Sunday night, with market participants expecting inflows into the metal amid reduced risk appetite.
For market participants, the situation presents both immediate liquidity and positioning questions. Crypto traders will be watching the $60,000 support level for signs of stabilization or continued selling pressure. Simultaneously, participants in the precious metals market will focus on the first post-weekend price action to gauge the extent of any risk-off move into gold.