Recent statements by U.S. President Donald Trump regarding threats to Iran have negatively impacted the cryptocurrency market, triggering a sell-off of altcoins.
Trump’s Threat Triggered Crypto Sell-Off
This week, Trump made a post on his social media, stating that the U.S. knows the location of Iran's Supreme Leader and could strike — but "not for now." These words caused panic among investors. Following this post, Bitcoin quickly dropped from $108,952 to $103,371 before slightly recovering to $104,950. Altcoins such as Ether, Solana, and XRP also fell in price: Ether lost 1.5%, dropping from $2,618 to $2,462, but later bounced back to $2,526. Meanwhile, Solana and XRP lost over 2% within 24 hours. However, Cardano, SUI, and Dogecoin faced even larger losses of more than 10-12% for the week.
Fed’s Warning Adds More Caution
In addition to geopolitical worries, the U.S. Federal Reserve also heightened concerns when Chair Jerome Powell warned that global conflicts and new tariffs could exacerbate inflation. Although interest rates remained the same, Powell made it clear that the Fed is not ready to lower them.
Bitcoin Stuck Between Roles
As tensions rose, many investors shifted their funds into stablecoins or held onto Bitcoin, viewing them as safer compared to altcoins. However, Bitcoin has not fully acted like a safe-haven asset, such as gold, nor has it rallied like risk assets. While Bitcoin is up 60% over the past year, analysts say it’s still unclear which direction it will take next. Crypto expert Doctor Profit warns that Bitcoin could dip below $100,000 soon, possibly even to $93,000, as markets brace for more macro shocks.
Against the backdrop of global tensions and economic warnings, the cryptocurrency market remains in a state of uncertainty. Investors continue to monitor Bitcoin's movements and react to news, which could significantly impact future trends.
