Bitcoin Drops 3.8% Amid Rising U.S.-Iran Military Tensions
The U.S. is considering military action against Iran, causing a decline in crypto markets.
- Bitcoin is down 3.8%, trading below $104,000.
- The CoinDesk 20 index dropped 6.1%; ether and solana fell 7%, while sui decreased nearly 10%.
- Crypto stocks like Coinbase, MicroStrategy, and Circle are down 2%-3%; bitcoin miners lost 6%-7%.
President Trump indicated potential U.S. involvement in the Israel-Iran conflict, stating the U.S. knows the location of Iranian leader Ali Khamenei and called for his unconditional surrender. The national security council met to discuss the situation, and odds of U.S. military action have risen to 65% on Polymarket.
Analysts noted that the escalation in the region introduces geopolitical risk, leading to a flight from risk assets, including crypto. Any de-escalation could be a positive catalyst, while further deterioration may trigger additional declines across risk assets. Concerns over rising oil prices impacting inflation were also raised.