Bitcoin drops 7% amid geopolitical tensions and leveraged unwind, with rising risks of deeper pullback near $101K support - IcoHolder.
Over the past 72 hours, Bitcoin’s bullish momentum has encountered a pause as escalating geopolitical uncertainty sparked a wave of bearish pressure. The cryptocurrency has dropped by 7%, failing to break through its previous all-time high near $112,000.
This short-term correction has been amplified by a large-scale unwinding of leveraged long positions, dragging not only Bitcoin but also several altcoins into the red. The broader market appears to be entering a period of caution.
Investor Anxiety Rises as Global Risks Escalate
Geopolitical turmoil has played a critical role in triggering this recent downturn. Former U.S. President Donald Trump’s announcement of potential unilateral tariffs within the next two weeks has rattled markets. Simultaneously, tensions between Israel and Iran escalated dramatically following a surprise military strike by Israel on early Friday, June 13.
This event sent shockwaves across global financial systems and led to panic selling in risk-on assets, including cryptocurrencies. With Bitcoin viewed as a high-volatility investment, it became one of the first assets to face liquidation pressures.
Bitcoin and Binance Open Interest Show Divergence
On-chain data from CryptoQuant has revealed a growing divergence between Bitcoin’s price trajectory and Binance’s Open Interest (OI) levels. As Bitcoin approached its $110,000 range—last seen in late May—Binance OI failed to follow suit, signaling reduced appetite for futures exposure.
This divergence suggests that while prices were moving higher, investor confidence remained tepid, particularly in leveraged positions. It may reflect underlying fears of instability and the desire to reduce exposure to potential downside.
Stablecoin Outflows Highlight Market De-Risking
In addition to weakened futures activity, derivative exchanges have experienced significant outflows of stablecoins. Over $750 million in stablecoins have been withdrawn, echoing a similar movement that occurred on May 29, 2025.
Such large-scale withdrawals are often interpreted as a sign of capital rotation or risk mitigation. When these movements coincide with local price peaks, they are commonly linked to hedging strategies or defensive positioning by experienced traders.
Outlook: Is a Deeper Pullback on the Horizon?
Bitcoin is now hovering just above the key psychological level of $110,000, but the recent 7% drop has made the short-term landscape more precarious. With no supporting signal from Binance Open Interest and continued capital outflows, the risk of further downside is increasing.
If the $101,000 support level fails to hold, Bitcoin could retrace further toward the $96,000 support area. In such an environment, traders are urged to conduct their own research and avoid emotionally driven decisions influenced by fear of missing out (FOMO).
