Bitcoin and the broader cryptocurrency market declined following remarks by former U.S. President Donald Trump that heightened geopolitical tensions.
Posting on Truth Social Tuesday, Trump warned Iran’s Supreme Leader, Ayatollah Ali Khamenei, saying, “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.”
The statement added to macroeconomic uncertainty, contributing to the market downturn.
Bitcoin, Ether, XRP tumble
“We don’t want missiles fired at civilians or American soldiers. Our patience is wearing thin. Thank you for your attention to this matter!” Trump added, further escalating tensions by calling for Iran’s “unconditional surrender.”
The remarks come against the backdrop of renewed hostilities between Iran and Israel. The conflict flared up after Israel launched a series of airstrikes on Iran Thursday night, prompting retaliatory drone and missile attacks from Iran.
Following Trump’s statements, Bitcoin dropped from $104,310 to $103,553 within the hour, before rebounding to $105,450 at the time of publication, according to CoinMarketCap data.
Ether also declined 1.3% to $2,462, while XRP slipped 1.3% to $2.14 over the same period.
Market sentiment in the crypto space also weakened. The Crypto Fear & Greed Index, which gauges investor sentiment, dropped 16 points—from “Greed” to “Neutral”—marking its first shift out of the “Greed” zone in 11 days, with a score of 52 out of 100.
How Trump’s Remarks Shook the Crypto Market
This isn’t the first time the crypto market has responded to Trump’s actions or statements.
Since his return to the White House earlier this year, market movements have frequently followed his policy decisions and rhetoric.
On February 2, just days after his inauguration, Bitcoin dipped below $100,000 for the first time in six days after Trump signed an executive order imposing import tariffs on China, Canada, and Mexico.
However, it was his election victory in November 2024 that many credit with sparking a major crypto rally—Bitcoin surged to an all-time high of $100,000 just a month later, on December 5.
Bitcoin’s Hold Above $100K in Question, Say Analysts
Some analysts warn that escalating geopolitical tensions could push Bitcoin to retest the key psychological level of $100,000.
Crypto analyst Doctor Profit predicted a drop below the $100,000 mark in the coming days, forecasting a decline to as low as $93,000. He also expects traditional markets to follow suit, stating, “The S&P 500 will drop by 7–10% as well. More red candles ahead of us.”
However, other traders see Bitcoin’s recent stability above $100,000 as a sign of a healthier long-term trend.
“Once again, much more sustainable than a rapid climb without any structure being built,” said crypto trader Jelle, pointing to Bitcoin’s ability to consolidate gains.
Meanwhile, Bitfinex analysts cautioned that Bitcoin remains vulnerable, noting on Tuesday that the asset “must hold above $102,000 to stay on track for a potential rebound.”
