Crypto Markets Slide as Trump Threatens Iran’s Leadership, Stoking War Fears
Rising geopolitical tensions in the Middle East are rattling crypto markets, as U.S. President Donald Trump issues stark warnings against Iran and hints at possible military intervention.
Bitcoin (BTC) dropped 3.8% over the past 24 hours, once again slipping under the $104,000 mark. Meanwhile, the CoinDesk 20 Index—which tracks major cryptocurrencies excluding stablecoins, exchange tokens, and memecoins—sank 6.1%.
Other digital assets faced steep declines as well: Ether (ETH) and Solana (SOL) each slid 7%, while Sui (SUI) plunged nearly 10%.
Crypto-related equities were also caught in the downdraft. Shares of Coinbase (COIN), MicroStrategy (MSTR), and Circle (CRLC) fell between 2% and 3%, while prominent bitcoin mining stocks like Bitdeer (BTDR), Riot Platforms (RIOT), CleanSpark (CLSK), HIVE Blockchain (HIVE), and Hut 8 (HUT) saw losses ranging from 6% to 7%.
Market anxiety surged after Trump took to social media with an explicit warning aimed at Iran’s Supreme Leader, Ali Khamenei:
“We know exactly where the so-called ‘Supreme Leader’ is hiding. He is an easy target, but he is safe there—we are not going to take him out (kill!), at least not for now. But we don’t want missiles shot at civilians, or American soldiers. Our patience is wearing thin.”
Trump further demanded Iran’s unconditional surrender and urged civilians in Tehran to leave the city. The White House confirmed that the National Security Council was urgently assembled, and Trump left the G7 summit early to address the escalating crisis.
On Polymarket, betting odds for a U.S. military strike on Iran before July have soared to 65%, signaling rising expectations of conflict.
“This sudden escalation has injected a significant geopolitical risk premium into markets,” said Javier Rodriguez-Alarcón, Chief Investment Officer at XBTO. “Crypto, as a risk asset, is no exception.”
Matteo Greco, senior analyst at Finequia, warned that broader economic consequences could follow. “If military action impacts Iran’s oil production, it could spark a surge in oil prices and revive inflationary pressures,” he explained.
Rodriguez-Alarcón added that the outlook remains highly fluid: “Any real step toward de-escalation could trigger a rebound in risk assets. But continued tensions could deepen the sell-off further.”
