The US may soon go to war with Iran, and the crypto market doesn't like prospects.
Bitcoin
BTC$103,824.68
It's down 3.8% over the last 24 hours and again trades under $104,000. Coindesk 20 – The top 20 cryptocurrency index by market capitalization, excluding stability, exchange coins and memokine, lost 6.1% in the same period and lost in ether.
ETH$2,469.53
And Solana
Sol$146.25
Both slumps SUI with 7%
sui$2.82
Soak almost 10%.
Crypto stocks are also hit, with Coinbase (Coin), Strategy (MSTR) and Circle (CRLC) all falling 2%-3%, while Bitcoin miners like Bitdia (BTDR), Riot Platform (Riot), CleanSpark (CLSK), Hive (Hive), and HUT 8 (HUT 8) losing 6%-7%.
Market movements came as President Donald Trump suggested that the US could soon be involved in the conflict between Israel and Iran.
“We know exactly where the so-called 'Super Leader' is hiding,” Trump posted on social media, referring to Iran's head of state Ali Khamenei. “He's a simple target, but he's safe there – we won't take him out (kill him!), or at least not for now. But we don't want to shoot missiles at civilians and American soldiers. Our patience is weak.”
Trump also surrendered unconditionally to Iran, calling for Tehranian residents to evacuate the city. According to the White House, the National Security Council was convened and Trump himself shortened the G7 Summit to focus on the issue.
The probability of US military action against Iran before July rose to 65% with Polymet.
“The sudden and serious escalation of the Iran-Israel conflict introduced a significant geopolitical risk premium and prompted immediate flights from risk assets that have not been proven to be immune.
“The geopolitical situation remains a wildcard. While reliable emissions in the Middle East could serve as a critical risk-on catalyst, further deterioration could trigger another movement across risk assets,” he added.
Matteo Greco, senior analyst at Finequia, shared the same sentiment, adding that the war could have significant consequences for the US economic outlook. “If Israeli military actions affect Iran's oil production, there could be a surge in crude oil prices, which could fuel new inflationary pressures,” Greco said.
