Bitcoin and the broader financial markets, including gold and U.S. stocks, tumbled after U.S. President Donald Trump’s prime-time address on the war in the Middle East Wednesday.
In the address, Trump provided an update on the U.S. military campaign against Iran, codenamed Operation Epic Fury. He declared major victories after one month of operations, claiming that Iran’s navy had been destroyed, its air force ruined, key terrorist leaders eliminated, and missile capabilities “dramatically curtailed.”
Trump framed the operation as essential to prevent Iran from acquiring nuclear weapons. He projected that core objectives are “nearing completion.” “We’re going to hit them extremely hard over the next two to three weeks. We are going to bring them back to the Stone Age where they belong,” Trump added.
He concluded by noting that the U.S. will soon be “safer, stronger, more prosperous, and greater than it has ever been before.”
, which hovered around $69,100 yesterday, dropped to lows of $66,250 Thursday morning before recovering to around $66,380, down 3.3% on the day according to CoinGecko data. Over $386 million in crypto positions were liquidated over the past 24 hours as a result of headline-driven volatility, per CoinGlass data.The S&P 500 and gold declined roughly 2% and 4%, respectively, while crude oil rose from $98 to $107 per barrel.
Crypto’s selloff was exacerbated by weakening institutional support. Spot Bitcoin exchange-traded funds (ETFs) have ended the four-week inflow streak, recording a $296.18 million outflow last week, according to SoSoValue data. The ongoing week’s inflows are positive at $13.35 million after yesterday’s $173.73 million outflow.
“Risk assets are falling because Trump's speech last night gave no indication that he planned to reopen the Strait of Hormuz,” Jeff Mei, COO of crypto exchange BTSE, told Decrypt.
On prediction market Myriad, owned by Decrypt's parent company Dastan, users now put the chance of crude oil's next move taking it to $120 a barrel at 74%, up from lows of 69% Wednesday. Myriad users also put a 54% chance on the average number of ships transiting the Strait of Hormuz remaining below 15, underscoring the persistent uncertainty surrounding the region.
The lack of confidence is largely due to the ongoing impact of the war. “Even if hostilities end, it could take months to secure the Strait and even longer to restore regional oil and gas production to previous levels,” Mei explained, noting that this delay could hinder economic growth in many countries and ultimately weigh down on crypto prices.