BTC Drops Amid Rising Tensions Over Trump’s Assassination Warning to Iran’s Leader

Bitcoin Sinks as Trump Threatens Iran, Raising War Fears

Growing geopolitical tensions between the United States and Iran are sending shockwaves through crypto markets, as traders brace for potential military conflict.

Bitcoin (BTC) has fallen 3.8% over the past 24 hours, sliding back below $104,000 amid the turmoil. The CoinDesk 20 Index, which tracks the largest cryptocurrencies excluding stablecoins, exchange tokens, and memecoins, shed 6.1% in the same period. Leading altcoins took significant hits as well, with ether (ETH) down 7% to $2,435.07, solana (SOL) dropping to $143.18, and sui (SUI) plunging almost 10% to $2.6306.

Crypto-related equities weren’t spared either. Shares of major players like Coinbase (COIN), MicroStrategy (MSTR), and Circle (CRLC) fell between 2% and 3%, while bitcoin mining firms including Bitdeer (BTDR), Riot Platforms (RIOT), CleanSpark (CLSK), HIVE (HIVE), and Hut 8 (HUT) tumbled between 6% and 7%.

The downturn followed explosive comments from U.S. President Donald Trump, who hinted at possible U.S. military intervention in the escalating conflict between Israel and Iran.

“We know exactly where the so-called ‘Supreme Leader’ is hiding,” Trump wrote on social media, referring to Iranian leader Ali Khamenei. “He is an easy target, but he is safe there—we are not going to take him out (kill!), at least not for now. But we don’t want missiles shot at civilians, or American soldiers. Our patience is wearing thin.”

Trump also called for Iran’s unconditional surrender and urged residents of Tehran to evacuate. The White House confirmed that the National Security Council had convened, and Trump cut short his participation at the G7 summit to address the mounting crisis.

Betting markets quickly adjusted to the heightened risk. On Polymarket, the odds of U.S. military action against Iran before July surged to 65%.

“The sudden and severe escalation of the Iran-Israel conflict introduced a significant geopolitical risk premium, prompting an immediate flight from risk assets across the board, to which crypto has not proven immune,” said Javier Rodriguez-Alarcón, Chief Investment Officer at XBTO.

Rodriguez-Alarcón noted that crypto markets could rebound sharply if diplomatic efforts succeed:

“The geopolitical situation remains a wildcard; any credible de-escalation in the Middle East could serve as a significant risk-on catalyst, while a further deterioration would likely trigger another move down across risk assets.”

Matteo Greco, senior analyst at Finequia, warned of broader economic implications if the conflict intensifies.

“Should Israeli military actions impact Iran’s oil production, a spike in oil prices could follow, fueling renewed inflationary pressures,” he said.

For now, the crypto sector remains highly sensitive to developments in the Middle East, with traders closely monitoring both diplomatic signals and threats of further escalation.