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The Middle East conflict has somehow created a negative sentiment in the crypto market, resulting in Bitcoin facing a massive downfall in a matter of hours as the number of investors started to exit from the market. 

On the same day Iran launched a missile attack on Israel, Bitcoin (BTC) saw its value drop by $4,000, touching the $60,000 mark. As Israel claimed that Iran "will pay" for the missile strike, some analysts predict that continued geopolitical conflict could cause Bitcoin to fall further, possibly reaching as low as $55,000.

Following Iran's attack on Israel, QCP Capital, a trading firm, confirmed that among several markets, crypto was hit the hardest. Further conflict could push Bitcoin to the aforementioned level.

However, despite Bitcoin witnessing a big fall and the Middle East conflict catching the public’s eye, the trading firm states the market still shows a strong interest in riskier investments. QCP Captial further claims: “This minor setback shouldn't distract from the bigger picture.”

CCC.io, a crypto community, claimed BTC could see a short-term pullback if it falls below the $60,800 level. CCC.io also affirms the short-term pullback could make BTC drop to the support levels near $58,213 and $54,869.

Another crypto trader, Roman, also informed his followers Bitcoin will touch the $55,000 to $57,000 before a potential reversal. 

In all scenarios, traders and analysts predict that Bitcoin will fall if the conflicts continue. However, they also expect Bitcoin to reverse once it hits key support levels.

Santiment, a crypto analytics platform, compared BTC's price movement during various geopolitical conflicts over the years. During the Israel-Palestine war in October 2023, Bitcoin saw a 5% drop in the first four days; however, it managed to recover, experiencing a 12% surge over the following nine days.

The flagship cryptocurrency also saw a 10% drop on the first day of the Russia-Ukraine conflict back in 2022, but positive trader sentiment pushed BTC's price to increase by 27% over the next six days. In both cases, Bitcoin initially fell before experiencing a significant price spike.

Currently, Bitcoin is priced at $61,300 after facing a 0.54% fall in one day, according to the data from CoinMarketCap.