Bitcoin and Nasdaq futures dipped as Trump hinted at possible military action against Iran, raising market uncertainties and inflation fears.
Bitcoin and Nasdaq futures experienced declines as President Donald Trump hinted at potential military action against Iran ahead of the midterm elections.
Market Reactions to Trump’s Remarks
On Sunday, Trump suggested that further military strikes on Iran are possible, which contributed to a downward trend in the markets at the start of the week. As of 03:30 UTC, Bitcoin was trading at $83,324, down 1.3%, while major cryptocurrencies like ether, XRP, and solana also saw similar losses. Nasdaq futures fell by 0.7%.
In contrast, WTI crude oil futures increased nearly 1% to $93.28, reflecting the uncertainty in the market. Trump noted that while he anticipates the conflict could conclude "very soon," he did not rule out additional military actions, stating, "I don't want to say that. I mean, it's possible, but I just don't want to say that."
Iran's Foreign Minister, Abbas Araghchi, responded by asserting that the country is prepared for renewed conflict and warned of a potential "doomsday war." Iran had proposed a temporary agreement to reopen the strategic Strait of Hormuz for negotiations, but Trump dismissed the offer, emphasizing that Iran is under significant pressure and must not acquire nuclear weapons.
The ongoing geopolitical tensions have exacerbated inflation fears, leading to a rise in Treasury yields. The yield on 10-year Treasuries has surged by 127 basis points to 5.20%, the highest level since 2007, amid concerns about inflation and potential Federal Reserve rate hikes.
Bitcoin had seen a strong recovery during the third quarter, rising 42% over three months, outperforming major assets like Nasdaq and gold. Analysts are now closely watching market data for signals regarding Bitcoin's future movements. Vikram Subburaj, CEO of the Giottus exchange, highlighted the importance of the 83,800-84,000 support zone and the 85,000-85,800 resistance zone, advising investors to manage volatility carefully as market conditions evolve.
