The recent tension in the Middle East - particularly between Iran and Israel - seems to be reshaping how Bitcoin (BTC) reacts to global events.
Its something that has been happening over the years, whereby the market always respond to the political activities but does not majors on this alone, instead, it basically depends on it supply and demands in the market.
Initially, BTC was responding mostly to buyer momentum, trading steadily. But on June 22, things changed dramatically. Iran launched missiles at Israel, followed by Israel’s retaliation, causing a sharp drop in BTC price, dipping below $99K.
We should not be moved by what is happening politically or in the general world economy, because they pose no long term effect on the market price, they can only cause a short term shock for it to respond to and later make a correction back, this depends on the nature of the breaking news, some helps in increasing the market while some may cause it to dump on a short range.