On Thursday, Bitcoin (BTC) was trading slightly above $61,000, continuing to show heightened volatility due to escalating tensions in the Middle East. Analysts caution that if the conflict between Israel and Hamas intensifies, Bitcoin’s price could drop to $57,000.

The ongoing geopolitical turmoil has raised concerns among investors regarding Bitcoin's status as a safe-haven asset. While traditionally viewed as a hedge against global instability, Bitcoin’s recent price decline has led some to question whether it can maintain this role during periods of heightened uncertainty. Despite this, some market participants argue that Bitcoin’s long-term fundamentals remain strong, and the current price volatility is a temporary response to external events.

Short-term Bitcoin holders have been particularly impacted by the price drop. Experts note that these investors have faced significant losses, with 6,400 BTC being liquidated. This data suggests that many short-term traders exited their positions as Bitcoin’s price fell, exerting additional downward pressure on the cryptocurrency.