Crypto Markets Slide as U.S.-Iran War Fears Grow

Bitcoin and the broader crypto market plunged as geopolitical tensions between the U.S., Israel, and Iran escalated, triggering a wave of risk-off sentiment. Bitcoin (BTC) dropped 3.8% over the past 24 hours, slipping below $104,000. Ether (ETH) fell 7% to $2,514, while Solana (SOL) dropped to $148, also down 7%. Sui (SUI) tumbled nearly 10%. The CoinDesk 20 index, which tracks the top 20 cryptocurrencies excluding stablecoins and exchange tokens, declined 6.1%.

Crypto stocks weren’t spared. Coinbase (COIN), MicroStrategy (MSTR), and Circle (CRLC) all fell by 2%-3%, while bitcoin mining stocks Bitdeer (BTDR), Riot Platforms (RIOT), CleanSpark (CLSK), HIVE Blockchain (HIVE), and Hut 8 (HUT) suffered heavier losses, down between 6%-7%.

The selloff came after U.S. President Donald Trump hinted at possible military intervention against Iran. In a social media post, Trump warned Iran’s Supreme Leader Ayatollah Khamenei was a known and reachable target but stressed restraint—for now. He urged Tehran residents to evacuate and demanded Iran's unconditional surrender. Trump cut short his G7 appearance, and the White House confirmed an emergency National Security Council meeting.

According to Polymarket, the probability of U.S. military action against Iran before July has surged to 65%.

XBTO CIO Javier Rodriguez-Alarcón said the heightened geopolitical risk drove investors away from volatile assets like crypto. Matteo Greco of Finequia added that a disruption to Iranian oil supply could spike energy prices, potentially reigniting U.S. inflation fears. Markets now await clarity on whether tensions will cool—or worsen, setting the tone for crypto’s next major move.