Bitcoin and other major cryptocurrencies experienced significant price fluctuations amid heightened geopolitical uncertainty caused by recent US political rhetoric directed at Iran.
Bitcoin briefly fell below the $104,000 mark, while Ether and XRP dropped approximately 1.3% in the wake of remarks by former US President Donald Trump. This immediate reaction fueled market nervousness, shifting the dominant investor sentiment.
Reflecting a surge in market caution, the widely followed Crypto Fear & Greed Index transitioned from indicating ‘Greed’ back to a ‘Neutral’ assessment shortly after the political comments emerged.
Analysts remain cautious about Bitcoin’s near-term trajectory. Views diverge on the cryptocurrency’s ability to hold the psychological $100,000 support level, with some projections suggesting a potential drop toward $93,000 if bearish pressure intensifies. Other market watchers point to the $102,000 price threshold as crucial for initiating a meaningful rebound attempt.
Market participants recalled how previous policy announcements and statements during Trump’s presidency triggered notable movements in Bitcoin’s price, underscoring the market’s sensitivity to US political developments.
Investors are strongly advised to exercise heightened caution in this environment. Diversifying holdings and closely monitoring global geopolitical events are recommended strategies, given the demonstrated impact such events can have on digital asset prices.