Bitcoin Price Falls After U.S. Bombs Iran and Sparks Market Turmoil

The crypto market faced a sharp downturn on Saturday evening following U.S. President Donald Trump’s announcement of a successful airstrike targeting three nuclear sites in Iran. Bitcoin, the leading digital asset, dropped to $100,945 per coin, erasing roughly $40 billion from the crypto market’s value in a matter of hours. The sudden escalation in Middle East tensions rattled investors, driving a broader sell-off across risk assets. As markets digest the geopolitical fallout, Bitcoin has shown a small sign of recovery, climbing back to $102,350, though uncertainty looms as the carnage plays out over the weekend.

The airstrike, which Trump described as a precise and powerful operation, targeted Iran’s Fordow, Natanz, and Esfahan nuclear facilities. In a post on Truth Social at 7:50 p.m. Eastern time, Trump declared the mission a success, stating that a full payload of bombs was dropped on Fordow and that all U.S. planes had safely exited Iranian airspace. He praised the U.S. military, calling it unmatched globally, and urged for peace in the region. The announcement, which followed days of speculation about U.S. involvement in the Israel-Iran conflict, caught markets off guard and triggered immediate volatility.

Trump wrote:

“We have completed our very successful attack on the three Nuclear sites in Iran, including Fordow, Natanz, and Esfahan. All planes are now outside of Iran air space. A full payload of BOMBS was dropped on the primary site, Fordow. All planes are safely on their way home. Congratulations to our great American Warriors. There is not another military in the World that could have done this. NOW IS THE TIME FOR PEACE! Thank you for your attention to this matter.”

Geopolitical Shockwaves and Crypto’s Reaction

The crypto market’s reaction was swift and severe, with Bitcoin plunging 2% within hours of Trump’s statement. Ethereum, Solana, and other major cryptocurrencies fared worse, declining 6% and 5% respectively, as investors fled to safer assets like gold and U.S. Treasuries. Between 5 p.m. and 8 p.m., the total crypto market lost approximately $40 billion, reflecting a classic risk-off move amid heightened geopolitical uncertainty. Trading volumes surged, with panic selling evident across major exchanges like Binance.

Trump’s remarks added complexity to an already tense situation in the Middle East. Earlier in the week, reports suggested that the Israeli Air Force had targeted Iran’s radar infrastructure, potentially paving the way for the U.S. operation. Speculation about the use of 30,000-lb. bunker buster bombs and stealth aircraft had circulated, and Trump’s confirmation of the strikes appeared to validate these scenarios. The president’s decision to act came sooner than anticipated, as he had previously indicated a two-week timeline for deciding on U.S. involvement.

The market’s initial reaction underscores Bitcoin’s sensitivity to geopolitical shocks, despite its reputation as a decentralized asset. Historically, cryptocurrencies have behaved like high-risk tech stocks during periods of global instability, as seen during the Russia-Ukraine conflict in 2022 when Bitcoin dropped over 12% in a week. Saturday’s decline, while less severe, highlights the challenges Bitcoin faces in being perceived as a safe-haven asset like gold, which saw a 3.2% price surge following the news.

Bitcoin’s partial recovery to $102,350 by 8 p.m. suggests some traders are viewing the dip as a buying opportunity. However, analysts warn that volatility is likely to persist until the full scope of the U.S. operation and Iran’s response becomes clear. Trump’s scheduled address to the nation at 10 p.m. Eastern time is expected to provide further details, potentially influencing market sentiment. Investors are also monitoring Iran’s Supreme Leader Ayatollah Ali Khamenei’s next moves, as he has vowed retaliation for recent Israeli strikes.

The broader crypto market remains on edge, with decentralized finance protocols seeing reduced activity as investors prioritize liquidity. Crypto related stocks, such as Coinbase Global and MicroStrategy, also took a hit, declining 6.3% and 7.1% respectively, mirroring the sell-off in digital assets. Institutional investors appear to be shifting capital to traditional safe havens, with Bloomberg Terminal data reporting a $1.2 billion outflow from crypto funds into gold and Treasuries within hours of the announcement.