The cryptocurrency market sharply dropped following a comment by US President Donald Trump on Iran’s leadership. On Tuesday, Trump came out and declared that America knows where Iran’s Supreme Leader, Ayatollah Ali Khamenei, is and referred to him as an easy target. This came as a further escalation of already heightened Middle East tensions, especially between Iran and Israel.
Trump made a post on his social platform, Truth Social, fueling fears of military strikes. He claimed that despite Khamenei being an easy target, America is not planning on attacking him today. He went a step further to demand Iran’s unconditional submission, repeating that American impatience was growing. This caustic language made investors fear mass Middle East instability.
The value of Bitcoin dropped significantly from \$104,310 to \$103,553 in just an hour after Trump’s quotes were released. It briefly recovered to \$105,450 but was unable to build a good uptrend strength. Ether also slipped down by 1.3%, falling from \$2,525 to \$2,462 in the same time frame. XRP, again a widely traded cryptocurrency, dropped from \$2.15 to \$2.14, reflecting a comparable loss in investor sentiment.
Trump’s statements impact bitcoin price again
It came amidst a worsening of Iran-Israel geopolitical relations. The Israeli airstrikes on Iran in the previous week were retorted by Iran, which retaliated by deploying drones and rockets. That action set off panic in crypto and equity markets when investors scrambled for safe-haven investments.
The Crypto Fear & Greed Index, a barometer of investor sentiment, dropped by 16 points after spending 11 successive days in “Greed” territory. It is now at a neutral level of 52, which is a sign of growing indecision in the crypto universe.
This is not the first occasion when remarks by Trump have influenced cryptocurrency trends. Earlier this year, even Bitcoin dropped briefly below \$100,000 when Trump signed new trade tariffs. Already, however, his November win in the 2024 election had spurred a record rise, taking Bitcoin above the \$100,000 mark for the first time.
Analysts now still have mixed opinions. While some think that in the near term, Bitcoin can go as low as \$93,000, others think prices would stabilize in case international conditions improve.
