Trump Warns Iran of Bigger Attack, Sending Bitcoin and Ethereum Lower
Bitcoin and Ethereum fell Tuesday in response to President Trump's announcement of U.S. strikes on Iranian targets near the Strait of Hormuz.
The attack was a retaliation for Iran attempting to place sea mines in the waterway and firing eight missiles at a US military base in Jordan, according to Trump's Truth Social post.
The price of Brent crude surged nearly 5% on the news, reaching $96 per barrel. This rise in oil prices along with increasing yields led to the Dow, S&P 500, and Nasdaq trading lower.
Peter Schiff noted that as long as deficit spending continues, the Fed will keep printing money and buying Treasuries, which would fuel inflation by widening budget deficits further.
Rising bond yields are particularly concerning for Bitcoin, as higher returns on safe government bonds pull capital away from risk assets like crypto.