Bitcoin and the overall cryptocurrency market plummeted sharply after U.S. President Donald Trump made threatening remarks against Iran's Supreme Leader Ayatollah Ali Khamenei, triggering macroeconomic uncertainty.
Trump publicly stated on his social media platform Truth Social on Tuesday: "We know exactly where the so-called 'Supreme Leader' is hiding. He is an easy target, but he is safe there—we will not take him out (kill him!) for now, at least not at this moment."
Trump further stated: "We do not want missiles aimed at civilians or U.S. soldiers. Our patience is running thin. Thank you for your attention to this matter!" He also demanded Iran's "unconditional surrender."
This statement came as geopolitical tensions between Iran and Israel continued to escalate, following Israel's dozens of airstrikes against Iran on Thursday night. In response, Iran launched a series of drone and missile attacks against Israel.
According to CoinMarketCap data, after Trump made this statement, Bitcoin dropped from $104,310 to $103,553 within an hour, before rebounding to $105,450 at the time of writing.
During the same period, Ethereum (ETH) fell 1.3% to $2,462, while Ripple (XRP) also dropped 1.3% to $2.14.
The sentiment in the crypto market also noticeably weakened. The "Crypto Fear and Greed Index," which measures overall crypto market sentiment, fell 16 points from the "Greed" zone to the "Neutral" zone, marking the first decline in 11 days, scoring 52 out of 100.
This is not the first time Bitcoin and the overall crypto market have reacted to Trump's remarks.
This influence has been present since Trump returned to the White House earlier this year.
On February 2, just days after his inauguration, Trump signed an executive order imposing import tariffs on China, Canada, and Mexico, causing Bitcoin to fall below $100,000 for the first time in six days.
However, many analysts believe that it was his victory in the November 2024 election that triggered a significant rally, allowing Bitcoin to break the $100,000 mark for the first time just a month later on December 5.
Some analysts believe that the current ongoing geopolitical tensions will lead Bitcoin to soon retest the psychological level of $100,000.
Crypto analyst Doctor Profit noted: "Bitcoin will drop below $100,000 in the coming days."
He expects the price could fall to $93,000 and stated that the stock market will also follow suit.
He added: "The S&P 500 index will also drop by 7-10%. We have more bearish candles ahead of us."
On the other hand, some traders believe that Bitcoin's recent stability above $100,000 has laid the groundwork for a stronger upward trend.
Crypto trader Jelle stated: "This trend again proves that the current state is more sustainable compared to a rapid rise without any structural support."
On Tuesday, Bitfinex analysts pointed out: "Bitcoin still faces further downside risks and must stay above $102,000 to have a chance of a rebound."
Related: Agricultural company AgriFORCE uses natural gas to power 120 crypto mining machines
This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Original article: “Bitcoin (BTC) and cryptocurrency market tumble as Trump calls Iranian leader an 'easy target'”
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