Key Takeaways
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Bitcoin price fell to nearly $63,000 after U.S.–Iran tensions escalated.
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Analysts warn of deeper downside risk.
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CCN analysis shows $60,263 remains the key support level to watch.
Bitcoin steadied near $63,000 on Monday after a volatile weekend that saw the world’s largest cryptocurrency tumble in the wake of escalating U.S.–Iran tensions, before clawing back some of its losses.
The coordinated U.S. and Israeli strikes on Iran and subsequent retaliatory action across the region rattled global markets, driving investors toward traditional safe havens such as gold and oil while weighing on risk-sensitive assets.
With Bitcoin’s price still down roughly 47% from its peak, analysts are debating whether the pullback marks a cyclical bottom—or if a deeper 60% to 70% drawdown remains possible.
Bitcoin dropped as low as $63,038 over the weekend after headlines of military escalation crossed the wires.
It later stabilized in the mid-$66,000 range, trading around $66,381 at the time of writing.
The price action unfolded as broader risk sentiment deteriorated.
Gold climbed more than 2.5% while oil surged above $80 per barrel on fears of supply disruptions.
Unlike gold, Bitcoin trades around the clock and was one of the few major assets available for immediate repositioning during the weekend shock.
Over 24 hours, roughly $657 million in leveraged crypto positions were liquidated, with long positions accounting for 75.6% of the total.
Crypto analyst Darkfrost argued that Bitcoin’s current 47% drawdown remains modest compared with prior bear markets.
“With a 47% drawdown (daily close), we are still far from the magnitudes seen in previous bear markets,” Darkfrost wrote on X.
He added that investor reactions today highlight the shift in sentiment.
“Just imagine the reaction from investors and the media if such a correction were to happen again. With only a 47% decline today, some are already claiming that Bitcoin is dead.”
Over time, however, bear market declines have gradually become less severe, he noted.
“If this pattern continues, one could reasonably expect a drawdown in the 60% to 70% range,” Darkfrost said.
A 70% drawdown means Bitcoin would fall 70% from its cycle peak, not from its current price.
If we use the previous peak near $123,000, a 70% drawdown would equate to around $36,900.
Lacie Zhang, Research Analyst at Bitget Wallet, told CCN the latest move underscores Bitcoin’s growing sensitivity to macro liquidity rather than geopolitical hedging.
