Bitcoin dropped below $65,000 on Thursday as U.S. President Donald Trump threatened a "massive attack" on Iran following Houthi attacks on Saudi oil tankers. Rising geopolitical tensions and energy prices are contributing to the decline in the cryptocurrency.
The cryptocurrency market is sensitive to geopolitical instability and macroeconomic factors. Escalating tensions in the Middle East and potential impacts on energy prices and inflation can lead to shifts in investor sentiment, affecting demand for risk assets like Bitcoin.
Bitcoin's price fell below $65,000 on Thursday, influenced by escalating geopolitical tensions and rising energy prices. U.S. President Donald Trump indicated he is considering a "massive attack" on Iran in response to military strikes in the region, including Houthi attacks on Saudi oil tankers in the Red Sea.
The BTC price dipped to $64,831.54, marking a 1.52% decrease. The growing conflict has pushed crude oil prices above $100 per barrel, raising concerns about worsening U.S. inflation. This scenario could lead the Federal Reserve to adopt a more hawkish stance, potentially dampening demand for riskier assets like Bitcoin.
Trump stated that Iran has "not received enough pain yet" and suggested that diplomatic efforts have been unsuccessful. While the White House has not issued new military orders, Trump indicated readiness for action, noting that Iran "wants to negotiate" but is not yet prepared for a deal.