The cryptocurrency market took a nosedive after U.S. President Donald Trump announced that the United States had launched missile strikes on three key Iranian nuclear sites, escalating tensions amid the ongoing conflict between Israel and Iran.
The attacks targeted Fordow, Natanz, and Esfahan, with Trump declaring the operation a “very successful attack” in a Sunday post on X.
US President’s message triggers market reaction
“We have completed our very successful attack on the three Nuclear sites in Iran, including Fordow, Natanz, and Esfahan.
All planes are now outside of Iran air space. A full payload of BOMBS was dropped on the primary site, Fordow. All planes are safely on their way home,” Trump stated.
He added, “Congratulations to our great American Warriors. There is not another military in the World that Could have done this. NOW IS THE TIME FOR PEACE! Thank you for your attention to this matter.”
The geopolitical tension has affected the financial markets, with cryptocurrencies bearing the brunt of the sell-off.
Bitcoin (BTC), which had been holding strong above $100,000 for more than 6 weeks, dipped to around $100,523.
Major altcoins also suffered significant losses, with Ethereum dropping 10.3 percent, Ripple falling 8.1 percent, and Solana declining 9.4 percent, all in the last 24 hours.
Among all crypto assets, Bitcoin has demonstrated the strongest stability compared to altcoins, reinforcing its reputation as a potential safe haven.
Its ability to remain above the $100,000 mark reflects growing investor confidence in Bitcoin as “digital gold” and a hedge against traditional market risks.
The latest drop briefly pushed Bitcoin below $102,000, but this is a liquidity sweep before another potential rally.
A key resistance level lies between $110,500 and $111,000; breaking through this barrier could propel BTC into price discovery mode, with short-term targets as high as $120,000.
Meanwhile, the broader crypto market faced heavy liquidations, with over $682 million in positions wiped out—a 38 percent surge in forced closures, according to CoinGlass data.
Altcoins like Virtuals Protocol, Celestia (TIA), AB, and Aptos suffered losses exceeding 9 percent as risk-off sentiment gripped traders.
Inflation fears loom as Middle East tensions escalate
The conflict has raised concerns about rising oil prices and supply chain disruptions, which could fuel inflation and delay anticipated Federal Reserve rate cuts.
Historically, black swan events—such as the COVID-19 pandemic and Russia’s invasion of Ukraine—have triggered sell-offs in risk assets, including crypto.
“Short-term, markets such as crude oil, stocks, and crypto will pivot on whether Iran retaliates and widens the war in a way that impacts oil supply versus backing down and offering concessions on its nuclear program,” Hanain Malik of Tellimer told Bloomberg.
However, a further escalation of the war could increase market volatility, while de-escalation may provide relief.