Bitcoin and the broader crypto market tumbled after US President Donald Trump sparked macroeconomic uncertainty with his remarks threatening Iran’s supreme leader, Ayatollah Ali Khamenei.
“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 (kill!), at least not for now,” Trump said on his social media platform Truth Social on Tuesday.
Bitcoin, Ether, XRP tumble
“We don’t want missiles shot at civilians or American soldiers. Our patience is wearing thin. Thank you for your attention to this matter!” Trump added. He also called for Iran’s “unconditional surrender.”
It comes amid the ongoing geopolitical tension between Iran and Israel, which was reignited after Israel carried out dozens of airstrikes on Iran on Thursday night. Iran has since retaliated with a series of drone and missile strikes against Israel.
After Trump’s post was published, Bitcoin (BTC) dipped from $104,310 to $103,553 within the hour before recovering to $105,450 at the time of publication, according to CoinMarketCap data.
Ether (ETH) fell 1.3% to $2,462, while XRP (XRP) dipped 1.3% to $2.14 over the same period.
Crypto market sentiment also took a downturn. The Crypto Fear & Greed Index, which measures overall crypto market sentiment, fell 16 points from “Greed” to “Neutral” for the first time in 11 days, scoring 52 out of 100.
The Trump catalyst in the crypto market
This isn’t the first time Bitcoin and the broader crypto market have reacted to Trump’s remarks.
It has been the case since Trump returned to the White House at the beginning of this year.
On Feb. 2, just days after his inauguration, Bitcoin fell below $100,000 for the first time in six days after he signed an executive order imposing import tariffs on China, Canada, and Mexico.
Yet, it was his election win in November 2024 that many believe triggered a major rally, with Bitcoin hitting $100,000 for the first time ever just a month later, on Dec. 5.
Analysts uncertain if Bitcoin can hold above $100,000
Some analysts believe that the ongoing tensions will soon cause Bitcoin to retest the psychological $100,000 price level.
Crypto analyst Doctor Profit said, “Bitcoin will drop below $100,000 in the coming days.”
He said he expected it to go as low as $93,000 and that the stock market would follow.
“SP500 will follow with a 7-10% drop as well. More red candles ahead of us,” he added.
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Other traders see Bitcoin’s sustained position above $100,000 in recent times as laying the groundwork for a stronger upward trend.
Crypto trader Jelle said, “Once again, much more sustainable than a rapid climb without any structure being built.”
On Tuesday, Bitfinex analysts said that “Bitcoin is still at risk of falling further, and it must hold above $102,000 to stay on track for a potential rebound.”
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
