Bitcoin Falls to $98K Amid Geopolitical Tensions, Institutions Buy the Dip
Bitcoin slid 11% from around $110,000 to $98,000 amid rising Middle East tensions involving Iran, Israel and the U.S. Traders briefly pushed prices up by 3% on renewed institutional buying. Major firms—MicroStrategy, Metaplanet (1,111 BTC), Panther Metals and Sequans—added over $500 million of BTC to treasuries this week, while U.S. spot Bitcoin ETFs saw $408.6 million of inflows. On-chain data show a weekly RSI divergence hinting at a potential test of $92,000–$94,000, though strong bids and liquidity above may trigger a short squeeze. Technicals remain mixed: Bitcoin holds key support at $103,430 and the 50-day EMA, with a bearish MACD setup poised for a bullish crossover. Market attention shifts to today’s FOMC meeting, where the Fed is expected to maintain rates but signal two cuts this year—news that could fuel another rally and possibly retest the all-time high near $111,000.
Bullish
Despite an 11% price drop to $98K driven by geopolitical tensions, strong institutional demand—from record ETF inflows to major corporate treasury purchases—provides substantial support. Technical levels at $103,430 and the 50-day EMA remain intact, and a potential MACD bullish crossover could spark a rally. The Fed’s likely signal of future rate cuts adds further bullish momentum, suggesting traders may see renewed upside toward $111K. Conversely, short-term RSI divergence warns of a dip to $92K–$94K, but overall the balance of catalysts favors renewed buying pressure.