Key facts
- U.S. Treasury Secretary Scott Bessent announced a major economic sanctions offensive against Iran, termed "economic D-Day."
- The offensive aims to cut off all economic lifelines supporting the Iranian regime.
- Potential secondary sanctions could target foreign banks, firms, and countries trading with Iran.
- Iran has warned that supporting new U.S. sanctions would be considered an "act of war."
- Bitcoin's price remained above $77,000 amidst these geopolitical developments.
- Gold prices saw an increase, while the US Dollar Index declined.
Bitcoin held its ground above $77,000 early Monday following U.S. Treasury Secretary Scott Bessent's declaration of an "economic D-Day" against Iran, signaling the commencement of a significant financial offensive. Bessent stated on X that the operation, beginning at dawn, is the "single greatest financial offensive ever marshaled against an adversary," aimed at severing all economic lifelines sustaining the Iranian regime.
President Donald Trump's administration has reportedly dismantled nearly all of Iran's military factories and weakened its nuclear program. The offensive could involve secondary sanctions targeting foreign banks, firms, and countries continuing to do business with Iran. Bessent warned that entities providing financial, commercial, or logistical support could face severe economic consequences.
In response, Iran has threatened that any country backing the new U.S. economic sanctions will be treated as an "act of war," warning that "not a single drop of oil" would leave the Strait of Hormuz or Persian Gulf if U.S. economic pressure persists. Oil prices have seen a decline to $85 per barrel.
Despite the escalating geopolitical tensions, Bitcoin's price has surged over 20% in the past week, trading around $77,150. Analysts anticipate further increases in Bitcoin and the broader crypto market, with prediction markets indicating a 68% probability of Bitcoin reaching $85,000 by the end of 2026. Meanwhile, gold prices extended their gains above $4,645, and the US Dollar Index traded lower near 98.80 ahead of U.S. PCE inflation data. 10-year Treasury yields hovered around 4.71%.
Data from CoinGlass showed mixed sentiment in the crypto derivatives market, with Bitcoin futures open interest climbing slightly in the last 24 hours, though showing a slight drop on CME and Binance. Amid these macroeconomic tensions, safe-haven assets are rallying, leading some blockchain-native investors to explore tokenized gold as an alternative investment.