Bitcoin Drops Below $103K Amid Middle East Tensions, Crypto Market Widespread Declines

Bitcoin and Ethereum markets have experienced significant volatility and declines amid escalating geopolitical tensions in the Middle East and broader macroeconomic uncertainties. Bitcoin briefly surged past $110,000 earlier this week but has since fallen below $104,000, with traders increasingly seeking downside protection through put options, signaling rising market caution. Ethereum has shown a sharp price drop exceeding 9%, despite strong underlying fundamentals and continued developer activity, reflecting weak short-term sentiment and speculative excess. The overall crypto market capitalization declined by over 4%, with major altcoins like Solana, Cardano, and Dogecoin also facing steep losses. Analysts attribute the recent price movements to profit-taking, speculative hype around events like the Circle IPO, and increased risk aversion linked to global economic and geopolitical developments. Market participants are closely watching key support levels such as Bitcoin's 50-day moving average and remain divided on whether this phase represents a healthy correction or the onset of a deeper downturn.