Bitcoin is on a roll Bitcoin is showing extraordinary strength as it dances around all-time highs in the face of the new Israeli-Iranian War. The cryptocurrency, long considered by some to be the ultimate form of a safe-haven asset in times of geopolitical and monetary tumult, has recently defied this trend. Yet this stability should not be mistaken, say a growing number of analysts, for a harbinger of long-term economic health.

While Bitcoin certainly has shown that it can weather any storm of geopolitical turmoil, the long term viability of such defiance is still to be seen. Looking forward, though the future of Bitcoin’s boom or bust marketability depends primarily on how long and deep the new Israeli-Iranian crisis extends.

Bitcoin's Price Fluctuations and Market Dynamics

Bitcoin has seen significant price movements amid the increasing conflict. In fact, last year, at the onset of the Israeli-Iranian hostilities, Bitcoin dropped to $43,000 from reaching $72,000. In more recent times, after Israel layers strikes on Iran, Bitcoin fell as low as $103k.

Despite these drops, Bitcoin has overall held its own, proving that Bitcoin is a really resilient asset. This performance is impressive, particularly given that Ether tends to be more volatile and reactive to market shocks. The NASDAQ has gone through its own correction of almost 11%.

Bitcoin seems stable for now, and the Crypto Fear & Greed Index corroborates that. It’s painted over a temporarily, and falsely, tranquil crypto market. This indicates that despite the building nervousness underneath, the prevailing mood in markets is one of cautious confidence.

The $100,000 Threshold and Potential Consequences

Bitcoin is at an extremely important area of about $100,000 with more than $1.74 billion worth of long positions resting on it. A breach of this magnitude would set off a chain reaction with catastrophic results.

Analysts are cautioning that if the market wasn’t able to hold above this level, a larger market correction could follow. A large concentration of leveraged positions at or just under the $100,000 level poses a considerable risk. This renders Bitcoin especially susceptible to sudden and violent crashes.

Institutional Confidence and Future Outlook

And yet, through all of these risks, there seems to be no lack of institutional confidence in Bitcoin. With Bitcoin ETFs continuing to rake in record inflows, in a clear indication that institutions have deep conviction in BTC’s future. Crypto entrepreneur and author Anthony Pompliano has called Bitcoin “the most relentless asset,” focusing on its tendency to double down in the wake of a geopolitical upstorm.

Behind that optimistic mystique, Za—one of the best Bitcoin analysts out there—warns that the current quietness in Bitcoin should not be trusted.

Bitcoin doesn’t seem worried for now, but this apparent calm may hide latent volatility - Za

Yet the analyst admonishes to be ever-watchful. If the Israeli-Iranian tensions persist or escalate we could see this unexpressed volatility turn visible.