Why Is Crypto Rising Today? BTC Jumps as Iran-Israel Conflict Enters Day 4
With rising geopolitical tensions in the Middle East, numerous investors are questioning: why is crypto experiencing an uptick today? Following a short dip over the weekend sparked by the Israel-Iran conflict, BTC (Bitcoin) has made a robust recovery, trading now above $107,000.
For those acquainted with Bitcoin’s responses during previous global crises, this resurgence is somewhat expected. In the past, Bitcoin has been known to undergo a steep but transient decline during significant global events, only to quickly recover and often surpass its previous levels.
While much of the western world worries about WW3, Bitcoin just hit $106k.
A genuine hedge against global chaos
— Toby Cunningham (@sircryptotips) June 16, 2025
DISCOVER: Next 1000X Crypto: 10+ Crypto Tokens That Could Hit 1000x in 2025
The Israel-Iran Conflict Is Likely Just Starting, Yet Bitcoin Is Already Bouncing Back
The initial price drop was observed late Friday after Israel conducted a “pre-emptive” attack on Iranian military sites, resulting in the death of 128 civilians during this initial strike. Israeli Prime Minister Benjamin Netanyahu defended the actions by stating that Iran was approaching the capability to develop nuclear weapons.
Interestingly, while Israel has persistently alerted that Iran is on the verge of acquiring nuclear weapons—a claim maintained for over 30 years—it has itself developed a nuclear arsenal without officially acknowledging it. Unlike Iran, Israel has never agreed to the Nuclear Non-Proliferation Treaty (NPT) and is widely believed to possess numerous nuclear warheads produced outside the scope of international regulations.
BTC dropped to as low as $103,000 in the immediate hours following the attack before making a slight recovery to $104,000 over the weekend. At first glance, the conflict seemed to dampen Bitcoin sentiment. However, when global markets reopened Sunday evening, Bitcoin swiftly changed direction, regaining momentum and trading beyond $107,000.
This recovery closely mirrors the movement of the U.S. Dollar Index (DXY), which fell to 98 at the week’s opening. Given that Bitcoin generally moves inversely to the dollar, this decline provided a boost to crypto prices. To put it differently, the primary reason crypto is up today is straightforward: the dollar has weakened.
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So far, markets seem to regard the ongoing Israel-Iran escalation as confined to the region. The U.S. has not yet engaged in the conflict in any direct manner, and Russia has opted not to provide military assistance to Iran, which has helped mitigate concerns over a larger regional war. This perception has likely played a role in the stability of both equity and crypto markets.
This situation could change suddenly, as around 30 U.S. Air Force refueling tankers are en route east across the Atlantic, prompting speculation of a military buildup. Analysts believe they may support Israel due to escalating tensions with Iran or take part in NATO exercises. Their exact destination remains uncertain, with potential stops in Europe or Middle Eastern bases.
SOMETHING’S HAPPENING: U.S. Air Force refueling tankers have just departed en masse from multiple bases; heading towards Europe.
These aren’t cargo planes. These are airborne refueling stations for combat aircraft. You don’t deploy this many without preparing for prolonged air operations.… pic.twitter.com/xrYKNFM0tU
— Brian Allen (@allenanalysis) June 16, 2025
Timing is also crucial to consider. BTC had recently surged towards new peaks. A correction was anticipated, and the geopolitical instability merely acted as a catalyst. The rebound indicates a robust underlying buyer interest for digital assets as the initial fear begins to wane.
In essence, Bitcoin’s return is influenced by several factors:
- Weakening U.S. Dollar, encouraging investors to pursue alternative assets;
- Short-term oversold conditions following a weekend slump;
- Expectations that the conflict will not escalate into a worldwide crisis;
- Historical trends demonstrating that crypto often rebounds quicker than traditional safe havens during times of uncertainty.
BTC crypto holder Anthony Pompliano noted that similar circumstances in the past have quickly turned around. He referenced an incident in October 2024, when Iran retaliated by launching hundreds of rockets at Israel following the assassinations of Hamas and Hezbollah leaders and a senior IRGC commander. At that time, BTC also experienced about a 3% dip, but within 48 hours, it had outperformed both gold and oil.
“This initial response mirrors what happened previously,” Pompliano remarked. “Bitcoin ended up outperforming the other two within the first 48 hours in that instance.”
Why Is Crypto Up Today? Institutional Market demand Returns: Spot Bitcoin ETFs See $1.37B Inflows
Last week, Bitcoin spot ETFs reported over $1 billion in inflows, indicating a robust rebound following two consecutive weeks of outflows. This revival occurred even with BTC’s subdued price movements for most of the week, which initially dampened inflows.
From June 9 to 13, Bitcoin-backed funds recorded $1.37 billion in net inflows, marking the first positive weekly outcome after two weeks of capital exiting crypto funds. This pattern underscores how sensitive ETF flows are to Bitcoin’s price changes.
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A series of significant Bitcoin purchases suggests a solid institutional accumulation. BlackRock iShares Bitcoin Trust ($IBIT) ranked first among spot Bitcoin ETFs, with a $240.14 million inflow on June 13. This substantial capital movement represents the highest single-day inflow for IBIT in recent weeks. This increase contributed to the total net Bitcoin ETF inflow of $302.77 million across all funds.
Net inflow into spot #Bitcoin ETFs in the past week = $1,070,000,000.
For #Ethereum ETFs, net inflow for the past week = $528,120,000.
Learn more: https://t.co/s0G9lUEsai pic.twitter.com/PNxqyD3aXK
— Cheek Analytics
In spite of a tumultuous weekend influenced by global strife, BTC has once again showcased its resilience. With a declining dollar, robust institutional buyer interest, and a historical pattern of rebounding during geopolitical uncertainty, crypto markets are demonstrating why numerous investors now consider BTC a strategic asset to accumulate.
EXPLORE: Seriously, What Happened to Non-BTC crypto Season? Gold Hits ATH As Crypto Plummets
Key Takeaways
- Why is crypto experiencing an increase today? Bitcoin has risen above $107K as investors view it as digital gold amid trading market instability, ETF inflows, and a declining dollar.
- Institutional interest remains robust, evidenced by $1.37B flowing into Bitcoin ETFs last week, with BlackRock’s $240M inflow on a single day.
- The weakness of the dollar supports BTC gains, as the U.S. Dollar Index dropped to 98, pushing investors to seek alternative stores of value.
- Bitcoin’s behavior reflects historical trends, exhibiting short-term drops and quick recoveries as it serves as a safe haven during times of geopolitical unrest.
The article Why Is Crypto Up Today? BTC Surges as Iran-Israel Conflict Enters Day 4 was first published on 99Bitcoins.
