Cryptocurrency markets briefly fell late Saturday following President Donald Trump’s announcement that US aircraft had bombed three nuclear sites in Iran. The airstrikes marked a significant escalation in the ongoing conflict between Israel and Iran, drawing the United States directly into the confrontation.
Bitcoin dropped below $101,000 within minutes of the news, near its lowest level in over a month. Ethereum, Solana, XRP, and other major cryptocurrencies also declined sharply.
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Rapid Rebound Follows Initial Sell-Off
Despite the steep drop, the correction was short-lived. Within hours, prices across most digital assets recovered. Bitcoin, in particular, recovered above the $102,000 threshold as of Sunday morning. Similar patterns were observed in other large-cap cryptocurrencies.
Analysts attributed the sell-off to a wave of risk aversion across global markets following the strikes. The crypto market often responds quickly to geopolitical developments, especially when the regular markets are closed.
Read also: 6 Reasons Why Crypto Is More Volatile Than Other Assets
Background on the Strikes
The airstrikes were confirmed by President Trump on Saturday evening, who stated that the US had destroyed Iran’s Fordow, Natanz, and Isfahan nuclear facilities. The attacks came after days of speculation over whether the US would join Israel in its ongoing military campaign.
According to US officials, the strikes were carried out using B-2 bombers and bunker-buster bombs, with all aircraft returning safely. Trump warned Iran against retaliation, promising a “far greater” response if further attacks occurred.
Iran responded within hours by launching missiles at Israel. Tehran’s foreign minister described the US strikes as illegal and said Iran would reserve “all options” in response.
Market Outlook Uncertain
While crypto prices have since stabilized, market sentiment remains cautious. Traders are watching for signs of further escalation, particularly potential Iranian retaliation against US military assets or commercial interests in the region.
Energy prices are also under scrutiny. Iran borders the Strait of Hormuz, a key shipping route for global oil supply. Any disruption in the region could impact broader financial markets, including cryptocurrencies.
As of time of writing this article, Bitcoin remains above $102,250 and Ethereum hovers near $2,250. Although prices have partly recovered for now, further developments in the Middle East may continue to influence crypto trading in the short term.
