Bitcoin Dips Below $100K: Hayes and Market Analysts Weigh in on Slump

Key Takeaways:

• Middle East tensions triggered a dip in Bitcoin, but analysts see resilience as institutional demand persists.
• Altcoins may rally if Bitcoin stabilizes, showing early signs of divergent strength.
• Critics argue Bitcoin’s drop exposes liquidity risks, favoring gold and equities as safer hedges. 

Over the weekend, Bitcoin dropped below $100,000https://www.hedgewithcrypto.com/prices/bitcoin/ for the first time since early May following U.S. airstrikes on Iranian nuclear sites. The price fell under $98,500 before recovering to $101,000. 

The cryptocurrency lost over 8% last week as geopolitical tensions rattled risk assets. This prompted industry leaders and cryptocurrency analysts to step forward, seeking to calm the market and prevent panic.

Why Experts Believe the Bitcoin Slump Is Temporary

BitMEX co-founder Arthur Hayes attributed the pullback to a temporary shock rather than a shift in fundamentals.

“Do you hear that? … it’s the sound of the money printers revving up to do their patriotic duty. This weakness shall pass and $BTC will leave no doubt as to its safe-haven status,” he wrote on X.

Do you hear that? … it’s the sound of the money printers revving up to do their patriotic duty. This weakness shall pass and $BTC will leave no doubt as to its safe haven status. pic.twitter.com/PTfZaAXFp7

— Arthur Hayes (@CryptoHayes) June 22, 2025

Institutional demand underpins a bullish outlook despite market jitters. 

Eugene Cheung of digital asset platform OSL pointed to strong structural interest in both Bitcoin and Ethereum, noting that crypto has demonstrated its ability to absorb macroeconomic shocks and resume its upward trajectory.

Furthermore, 10x Research’s Markus Thielen sees tactical rally opportunities if Bitcoin holds above the short-term realized price at $98,000 and the $102,000 trendline. 

He warned that a sustained break below this zone would force traders to shift focus to risk management in the absence of fresh upside catalysts.

Meanwhile, Nick Ruck of LVRG Research has said altcoins may outperform if conditions stabilize. 

He highlighted signs of “divergent strength” among alternative tokens, suggesting they could shine once broader markets regain composure.

However, not all voices share the optimism. Pierre Rochard, CEO of The Bitcoin Bond Company, noted that Bitcoin’s sell-off reflected its role as an easily liquidated asset during deleveraging.

In addition, Bitcoin critic Peter Schiff questioned who would buy the dip below $100,000, tying BTC’s performance to traditional markets and suggesting that equities and gold may offer better risk-off alternatives.

Nonetheless, his criticism appears to have been overlooked now that the digital asset has surpassed the $100,000 mark.

Is Crypto Becoming More Resistant to Geopolitical Panic?

The pullback began when President Trump abruptly cut short the G7 Summit in Canada on June 16, warning Americans to leave Iran's capital, Tehran. 

That shock tumbled Bitcoin from an intraday high of $108,780 to roughly $106,421, triggering an $80 billion market sell-off and over $400 million in liquidations.

Meanwhile, Bitcoin miners have struggled under slumping transaction fees and rising costs. June’s fees made up just 0.96% of block rewards, their lowest share since January 2022, while hash price has halved since last year’s halving. 

New U.S. hardware tariffs have driven up equipment expenses by 36%, squeezing margins and forcing some operations to sell holdings during price dips.

Despite these headwinds, major institutional players continue to acquire Bitcoin.

MicroStrategy added over 1,045 BTC in early June, bringing its total holding to about 592,100 BTC. Additionally, Tokyo-based Metaplanet has recently surpassed Coinbase and Block, holding 10,000 BTC on its balance sheet. 

Metaplanet has acquired 1112 BTC for ~$117.2 million at ~$105,435 per bitcoin and has achieved BTC Yield of 266.1% YTD 2025. As of 6/16/2025, we hold 10,000 $BTC acquired for ~$947 million at ~$94,697 per bitcoin. $MTPLF pic.twitter.com/8nmQ2RaOIF

— Simon Gerovich (@gerovich) June 16, 2025

Bitcoin ETFs also saw more than $1.3 billion in inflows over five straight days last week, underscoring sustained demand.

Even as geopolitical tensions fuel volatility and miners brace for tighter profit margins, deep-pocketed institutions remain undeterred, treating BTC sell-offs as opportunities for accumulation.