Tensions in the Middle East have once again shown how global unrest can shake financial markets. The ongoing conflict between Israel and Iran has sent Bitcoin and the broader cryptocurrency market into a decline. Over the past 24 hours, the total global crypto market value has dropped by more than 3% according to data from CoinGecko.
Trump’s Actions Trigger Market Reaction
US President Donald Trump’s early exit from a world leaders’ meeting and his Truth Social post stirred concern among traders.
He had travelled to Canada for the G7 summit but left ahead of schedule. The reason, he said, was the rising tensions between Israel and Iran.
Fox News reported that Trump asked the National Security Council to ready the White House’s Situation Room. Not long after, he posted on Truth Social, urging people in Tehran to evacuate immediately. The message added to market concerns.
The White House later confirmed his early departure. Press Secretary Karoline Leavitt said Trump arrived on Sunday and held meetings but left after Monday’s dinner due to the crisis.
Bitcoin Drops but Holds Key Level
Trump’s sudden exit and warning caused a dip in Bitcoin’s price. Before the news broke on Monday, Bitcoin had climbed to an intraday high of $108,780. But following the developments, the price started to fall.
Despite the recent dip, Bitcoin has managed to stay above the $100,000 mark since early May. Crypto analyst Anndy Lian suggested that Bitcoin’s recent steadiness signals growing maturity. He noted that its ability to stay above $100,000, even during political tensions, reflects increasing investor confidence.
Lian pointed to strong institutional investment, with the iShares Bitcoin Trust bringing in about $12 billion this year. He added that Bitcoin’s recent drop reflects market fears sparked by geopolitical tensions, but its ability to hold steady suggests it is becoming more than just a risky asset.
Still, not everyone believes the market drop is directly tied to the Middle East. Analyst Michael Van de Poppe shared a different view. He posted on his X page that Bitcoin was already starting to weaken before the recent headlines.
He noted that a drop below $105,000 could trigger liquidations, likely leading to a deeper decline. While some blame global tensions, van de Poppe sees the move as a typical “risk-off” correction ahead of the upcoming US Federal Reserve meeting.
Altcoins didn’t escape the downturn either. In the last 24 hours, Ethereum has slipped more than 4%, Ripple’s XRP dropped about 4%, and Binance’s BNB lost 2%.
Other tokens like Dogecoin, Solana, and Cardano each fell over 5% within the same timeframe.
Analysts Stay Bullish Despite the Dip
Despite the dip, some analysts remain optimistic about major tokens. They see strong technical patterns forming in XRP, Ethereum and Dogecoin.
- A pseudonymous analyst says a break above $2.40 could push XRP toward a $14 target
- Bitcoinsensus points out Ethereum has shown a bullish flag pattern since 2021, targeting $8,000 on breakout
- Cryptobatman notes Dogecoin is following a classic breakout pattern, with recent signs indicating a possible surge
Despite the optimism, tensions in the Middle East continue to rise. Several countries, including China, have urged their citizens in Israel to leave immediately via land borders due to growing risks.
The Russian embassy echoed the same advice. Ambassador Anatoly Viktorov told local media that all Russians in Israel should leave until the fighting stops.
It remains to be seen how things will unfold in the coming days. But if the conflict continues, it could weigh heavily on global financial markets, causing Bitcoin and altcoins to drop even further.
Source: https://www.cointribune.com/en/bitcoin-slides-as-trumps-middle-east-warning-rattles-markets/
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.