The potential for U.S. military action against Iran is causing stirrings in the crypto markets, particularly impacting Bitcoin (BTC) and other cryptocurrencies.
Bitcoin is trading at around $104,496.61 and has witnessed a drop of 3.8% in the last day, marking a decline below the $104,000 threshold again. The broader CoinDesk 20 index, which reflects the largest cryptocurrencies by market capitalization, has plunged 6.1%, with Ethereum (ETH) and Solana (SOL) both facing significant downturns.
Details to note:
- Trump warned about possible military actions against Iran.
- The situation raises concerns about oil prices and potential economic consequences tied to Iran’s production.
“We know exactly where the so-called ‘Supreme Leader’ is hiding,” said Trump regarding Iran’s leader, Ali Khamenei. “He is an easy target, but he is safe there. We don’t want missiles shot at civilians or American soldiers. Our patience is wearing thin.”
The White House has convened the national security council, and Trump’s calls for Iran’s unconditional surrender alongside evacuation orders for Tehran residents have intensified worries about U.S. involvement in the ongoing conflict.
Odds for military action against Iran have surged to 65% according to Polymarket’s predictions.
Analysts suggest that this sudden escalation in geopolitical risk is leading to significant downturns in risk assets, including cryptocurrencies. However, any signs of de-escalation could act as a catalyst for a market rebound.
For those following the ongoing developments in Iran, these dynamics could have serious implications for oil prices and consequently the inflation outlook in the U.S.
