Major cryptocurrencies suffered significant losses after former U.S. President Donald Trump escalated geopolitical tensions through a social media post threatening Iran’s supreme leader. The digital asset market’s sharp reaction underscores its heightened sensitivity to global political instability.
Bitcoin dropped nearly 4% within 24 hours, briefly falling below $104,000. Ethereum declined approximately 6.5% to trade near $2,470. Altcoins including Solana, Cardano, and Dogecoin mirrored the downturn with losses approaching 7%, indicating a broad market retreat driven by geopolitical uncertainty.
The sell-off reflects investor behavior during crises, where capital typically flees volatile assets for safer havens. This episode highlights cryptocurrencies’ complex dual identity as both speculative instruments and potential crisis shelters, though current movements indicate risk aversion dominating.
Market analysts note the crypto ecosystem’s reaction to geopolitical events continues evolving. Increased institutional participation appears to amplify price sensitivity to global news, accelerating volatility during international tensions.