Bitcoin gave up part of its recent gains on June 8 as escalating tensions between Israel and Iran weighed on investor sentiment, pushing the leading cryptocurrency back below the $63,000 level.
The pullback came after a brief rally that saw Bitcoin climb above $64,000 following comments from U.S. President Donald Trump, who suggested that a diplomatic agreement with Iran remained within reach. However, renewed military actions between Israel and Iran quickly reversed market optimism and triggered a risk-off move across financial markets.
The Israeli Air Force struck military targets belonging to the Iranian terror regime in western and central Iran a short while ago.
— Israel Defense Forces (@IDF) June 8, 2026
Israel-Iran conflict shakes risk assets
The Israel Defence Forces confirmed that its air force carried out strikes on military targets in western and central Iran on June 8. The operation was described as a response to Iran’s recent missile attacks, marking the latest escalation between the two countries since an April ceasefire.
The renewed conflict increased concerns among investors, leading to a selloff in risk assets, including cryptocurrencies. Market participants moved toward safer assets as geopolitical uncertainty intensified across the region.
Trump urged both sides to exercise restraint and maintained that diplomatic efforts with Iran were progressing. He also stated that Israeli Prime Minister Benjamin Netanyahu would eventually support a U.S.-brokered deal with Tehran despite the recent exchange of attacks.
Rising oil prices add pressure on Bitcoin
The latest developments in the Middle East sent energy prices sharply higher. WTI crude climbed above $93 per barrel, while Brent crude approached $96, reflecting fears of potential supply disruptions.
At the same time, the U.S. dollar strengthened, with the Dollar Index (DXY) moving above 100 after strong U.S. jobs data reinforced expectations that interest rates could remain elevated. The yield on the 10-year U.S. Treasury also rose, adding further pressure on risk assets.
Bitcoin traded at around $62,990 at the time of writing, after reaching an intraday high of $64,128. Trading volume rose 17% over the past 24 hours, signalling increased market activity.
Analysts see potential rebound despite volatility
Despite the latest pullback, several market analysts remain optimistic about Bitcoin’s near-term outlook. Analysts, including Benjamin Cowen and Michael van de Poppe, noted that Bitcoin closed the week above its 200-week moving average, a level often viewed as a key long-term support zone.
Data from CoinGlass showed mixed sentiment in the derivatives market. Total Bitcoin futures open interest fell 0.7% to $44.69 billion over the past day, although open interest on CME recorded a modest increase.
Meanwhile, market participants are also watching for potential Bitcoin purchases from Strategy, led by Michael Saylor, after the company paused acquisitions for three weeks.
Research firm 10x Research noted that Bitcoin is currently in technically oversold territory following last week’s decline, increasing the likelihood of a short-term rebound. However, the firm cautioned that any near-term recovery could remain vulnerable if geopolitical tensions continue to escalate.
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