The cryptocurrency market extended its sharp downturn after U.S. President Donald Trump confirmed that additional airstrikes would hit Iranian targets, dramatically escalating geopolitical tensions in the Middle East.
The development sent shockwaves across global financial markets, triggering a broad risk-off reaction as investors fled from volatile assets. Major cryptocurrencies bore the brunt of the sell-off, with Bitcoin (BTC), Ethereum (ETH), and XRP (XRP) all recording notable losses amid rising uncertainty.
Trump And Iran Standoff Sends Crypto Lower
In a recent video clip shared on X, President Donald Trump announced that the United States would continue launching airstrikes against Iran until its military objectives are fully achieved. The message was circulated by Rapid Response 47, the official White House response account, further amplifying its global reach and intensifying investor concerns.
Following Trump’s remarks, the crypto market experienced a fresh wave of selling pressure. Bitcoin slumped below the $66,000 mark, Ethereum dropped by over 3%, and XRP also recorded losses exceeding 3% within hours. The downturn triggered liquidations across leveraged derivatives positions, accelerating the pace of decline and pushing volatility metrics sharply higher.
Meanwhile, it’s worth noting that the announcement came amid an already volatile situation, as Iran launched retaliatory strikes on U.S. military bases and Gulf strategic sites in response to the killing of its supreme leader, Ayatollah Ali Khamenei, and other top officials. The back-and-forth escalation has heightened fears of a broader regional war that could disrupt global energy markets and destabilize international trade routes.
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UK Joins Effort as Crypto ETFs Face Pressure
In a significant twist, the United Kingdom has agreed to allow the United States to utilize its military bases to strike Iranian missile sites. The decision was revealed by the U.K. Prime Minister Keir Starmer, marking a major expansion of international involvement in the conflict.
Starmer justified the move by accusing Iran of reckless behavior, particularly following reported attacks on the United Arab Emirates and Bahrain. The entry of another global power into the conflict further unsettled investors, adding pressure to an already fragile digital asset market.
Crypto ETFs were not left out in the investor pullback as tensions escalated on Friday. According to SoSoValue data, Bitcoin ETFs recorded an outflow of $27.55 million, while Ethereum ETFs saw the worst of it with $43 million in outflows. In contrast, XRP products recorded a modest inflow of $2.21 million, standing out amid the broader wave of capital flight from crypto-linked investment vehicles.
Market Experts Torn On What Comes Next
Meanwhile, market experts are torn on the potential effect of the conflict on the crypto market. While some warn that if the strikes and retaliatory attacks continue, the crypto crash could deepen, potentially pushing Bitcoin and other top digital assets toward multi-month lows.
Others, like Maelstrom founder Arthur Hayes, speculate that the war could prompt the U.S. Federal Reserve to print more money, leading to liquidity injection and a bullish boost for the crypto market.
Regardless, amid the conflict, Bitcoin ended February in the red, marking its fifth consecutive monthly loss. The last time BTC recorded such a streak, it also closed a sixth straight week in negative territory. Market watchers are now closely observing whether history will repeat itself, as traders brace for continued volatility in the days ahead.
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Evans Kelvin
The CoinRemark Team
