#BTC Market Analysis   Bitcoin has fallen to $103,000 after Israel-Iran tensions.

Bitcoin has edged ever closer to the psychologically important $100,000 price level, beating investors’ expectations of a new all-time high after Israel launched a series of airstrikes on Iran.

Explosions were reported in the Iranian capital Tehran at 01:50 on Friday. After Israel claimed responsibility for the attacks, Bitcoin fell 2.8 percent from $106,042 to $103,053 in 90 minutes, according to BTCUSD data, before recovering slightly to $104,370.

Bitcoin’s drop caught optimistic investors off guard

The drop caught investors off guard. Data shows that about $427.84 million worth of long positions were liquidated in the last 24 hours. Just a few days ago, on Tuesday, Bitcoin had risen to $110,265. That was just below its all-time high of $111,940 set on May 22.

While gold and oil prices have increased by 1.44% and 11% respectively in the past 24 hours, some crypto analysts believe this outperformance could soon change.

Bitcoin entrepreneur Anthony Pompliano said that while oil and gold are currently rising, Bitcoin is falling, but history suggests that this trend could soon reverse.

Pompliano added that this initial reaction was “exactly the same” as when Iran fired hundreds of rockets at Israel in October. At the time, Bitcoin was down 3%.

“In that case, in the first 48 hours, Bitcoin managed to outperform the other two,” Pompliano said.

Uncertainty remains over what happens next

“It will be interesting to see what happens here,” Pompliano added.

Israeli Prime Minister Benjamin Netanyahu said on Friday that his military had targeted Iran’s nuclear program and was conducting an “operation that will last for the number of days necessary to eliminate this threat.”

Iran’s Supreme Leader Ayatollah Ali Khamenei said Israel should expect “severe punishment” in response to the attacks. Iran reportedly launched more than 100 drones in retaliation.

US Secretary of State Marco Rubio denied the US involvement in the attacks.

Other Bitcoin advocates say now is the time to buy. Samson Mow told Ryan Cohen on Thursday that the asset was in a buy zone.

“When [Cohen] feels scary, that’s when you buy. If it goes down further and you feel more anxious, buy more,” Mow said.

Part of GameStop’s most recent $1.5 billion convertible note issue was used to buy 4,710 Bitcoin worth $513 million on May 28.