The cryptocurrency market saw sharp declines on Tuesday after U.S. President Donald Trump issued a provocative statement targeting Iran’s supreme leader, Ayatollah Ali Khamenei. The escalating rhetoric added fresh macroeconomic uncertainty, triggering a selloff across digital assets.
Trump’s Statement Sparks Market Volatility
In a post on his social media platform, Trump said, “We know exactly where the so-called ‘Supreme Leader’ is hiding. He is an easy target… but is safe there — We are not going to take him out, at least not for now.”
He further warned, “Our patience is wearing thin… Iran must surrender unconditionally.”
These remarks followed a wave of drone and missile strikes between Iran and Israel, raising global tensions and prompting a swift risk-off reaction in financial markets.
Bitcoin, Ether, and XRP React to Geopolitical Shock
Bitcoin (BTC) dropped sharply from $104,310 to $103,553, before recovering to $105,450 shortly after. Ether (ETH) also fell 1.3% to $2,462, while XRP dipped to $2.14, down 1.3% over the same period.
The market’s mood shifted notably, with the Crypto Fear & Greed Index dropping 16 points, moving from “Greed” to “Neutral” for the first time in nearly two weeks.
Analyst Views Split on Bitcoin’s $100K Support Level
Market watchers are now focused on whether Bitcoin can hold above the key psychological level of $100,000.
- Bearish analysts, like Doctor Profit, predict a drop toward $93,000, citing geopolitical risk and potential weakness in traditional markets.
- Others, including trader Jelle, argue that Bitcoin’s structured consolidation above $100K signals a stronger long-term trend, rather than a steep correction.
Bitfinex analysts warned that BTC must stay above $102,000 to maintain bullish momentum.
Geopolitical Risk Meets Crypto Uncertainty
This isn’t the first time Trump’s actions have moved crypto markets. Following his return to the White House, past announcements — including tariffs on major economies — have caused similar volatility.
Still, the November 2024 election win previously triggered Bitcoin’s breakout above $100K, proving that political leadership continues to play a significant role in crypto market behavior.
Summary
Heightened geopolitical tension and aggressive political rhetoric caused Bitcoin and altcoins to dip. While support above $100K remains crucial, investors should monitor macro trends and market sentiment closely in the coming days.
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