Bitcoin tumbles, gold surges after Israeli air raids on Iran, Israeli PM warns strikes will last as many days as needed

Bitcoin slumped 5% to $102,900 early Friday after Israeli airstrikes hit Tehran, while spot gold surged to $3,429 in a flight to safety, TradingView data shows.

On Thursday, the leading digital asset managed a modest rebound to $108,450 from $107,000, even as markets absorbed bearish signals from reports that Israel had notified US officials of its intent to launch an operation against Iran.

Tensions escalated after Israel launched “Operation Rising Lion” against Iran, with Israeli Prime Minister Benjamin Netanyahu stating, “This operation will continue for as many days as it takes to remove this threat.”

US Secretary of State Marco Rubio said Israel took “unilateral action against Iran” and had informed the US that the strikes were necessary for self-defense, AP reported.

The military action comes amid heightened concerns over Iran’s nuclear program. The International Atomic Energy Agency’s Board of Governors censured Iran on Thursday for not cooperating with inspectors, prompting Tehran to announce plans for a third enrichment site and the deployment of advanced centrifuges.

The US has begun pulling some diplomats from Iraq’s capital and offering voluntary evacuations for US military families in the broader Middle East region. The State Department issued warnings for Americans to leave Iraq, citing “heightened regional tensions.”

Trump’s envoy Steve Witkoff indicated that nuclear talks with Iran would continue, though Israel’s military action could escalate regional tensions and impact US interests.

Bitcoin has historically seen short-term price declines during periods of geopolitical turmoil, as investors tend to shift toward traditional safe-haven assets.

Nevertheless, the crypto asset has frequently rebounded swiftly, supported by its increasing perception as a digital store of value.

At the time of writing, BTC was trading at around $103,100.

The crypto market is under pressure as Bitcoin extends losses. Ethereum dropped below $2,500, while XRP fell to $2.1.

According to Coinglass data, leveraged liquidations across crypto assets surged to $1 billion in the last 12 hours. Long positions accounted for the vast majority of losses at approximately $937 million, compared to $67 million for short positions.