Cryptocurrency markets are under pressure as President Trump threatens military action against Iran, introducing a new wave of geopolitical instability that has rattled global investors. Bitcoin (BTC) fell 3.8% in the past 24 hours, now trading below $104,000, as escalating conflict fears push investors away from risk assets.
Trump Issues Stark Warning to Iran
In a tense social media post, President Trump directly referenced Iran’s Supreme Leader, suggesting the U.S. has knowledge of his location and the capability to eliminate him. Although Trump added “not for now,” he emphasized that U.S. patience is wearing thin. He demanded Iran’s unconditional surrender and called on Tehran residents to evacuate.
The National Security Council has been activated, and Trump cut short his appearance at the G7 summit to address the crisis. The probability of a U.S. military strike on Iran before July has surged to 65%, according to prediction markets.
Crypto Market Takes a Hit
The impact on digital assets has been immediate:
- Bitcoin fell to $104,960, down 3.8%
- Ethereum (ETH) dropped 7%
- Solana (SOL) lost 7%
- Sui (SUI) fell nearly 10%
- The CoinDesk 20 index of top cryptocurrencies dropped 6.1%
Crypto stocks and miners were also hit. Major names like Coinbase, MicroStrategy, and Circle fell by 2%-3%, while mining firms such as Riot Platforms, Bitdeer, CleanSpark, and Hut 8 lost 6%-7%.
Analysts Cite Risk-Off Sentiment
Analysts warn that crypto markets are reacting like traditional risk assets, pulling back sharply during geopolitical stress. A further escalation in the Middle East, especially involving oil production, could worsen the situation.
“The sudden and severe escalation introduced a geopolitical risk premium,” said one analyst, adding that crypto has not been immune to the global flight from risk.
Oil supply disruptions from Iran could lead to higher oil prices, reintroducing inflation risks and complicating U.S. economic recovery.
What to Watch Next
The market is now closely watching for signs of either military escalation or diplomatic de-escalation. A peaceful resolution could provide a rebound opportunity for crypto, while further conflict may trigger additional volatility.
Bitcoin’s decline highlights the growing sensitivity of digital assets to global political developments, further cementing crypto’s position within broader financial markets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.