Trump's Iran Comments Weigh on Bitcoin as Oil Prices Rise
Bitcoin and other risk assets started the week on weaker footing after President Donald Trump's comments about potential US military action against Iran. Speaking Sunday, Trump said he expected the conflict to be won 'very soon' and that oil prices would then fall. However, he refused to rule out more strikes before the November midterm elections.
Trump's words had an immediate impact on markets, with Bitcoin slipping 1.3% to $83,324 in overnight trading. Other large cryptocurrencies such as ether, XRP, and Solana also traded lower. Nasdaq-100 futures dropped 0.7%, while energy markets moved the other way: West Texas Intermediate crude rose nearly 1% toward $93.28 a barrel.
Higher oil prices raise concerns about renewed inflation pressure if fighting continues and energy flows stay constrained. Trump argued that the US was prevailing through both military and economic pressure, citing Iran's collapsing economy with extremely high inflation and a currency he described as nearly worthless.