Bitcoin continued to sink on Wednesday as geopolitical tensions between the U.S. and Iran are growing more severe. The conflict overshadowed BTC’s sharp rebound from less-than-expected U.S. inflation data.
Bitcoin Dumps As Trump Signals US-Iran War Tensions To Escalate
The BTC price started trading higher than $61,700 after new Consumer Price Index (CPI) data came in cooler. The CPI data met the Wall Street forecast, putting a stop to worries of quickening inflation.
At the time, the rally was short lived as traders responded to the growing unrest in the Middle East. Bitcoin fell to approximately $61,500 and had been trading under pressure with an intraday loss of about 2%.
However, the momentum around favorable inflation metrics pushed BTC back above $61,900 in the day despite the Middle East conflict.
Earlier, the downward swing in the market came after U.S. President Donald Trump blasted Iran in a slew of post on Truth Social. He wrote, “Iran’s Military is a complete and total mess. Much of it, like their Navy and Air Force, doesn’t even exist anymore – They have been completely defeated.”
He also accused Tehran of delaying negotiations longer than they should have. Moreover Trump warned: “They’ve taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!”
In another message, Trump praised U.S. naval blockade in the Strait of Hormuz. He called it “the most successful Blockade in the history of Naval Warfare.” Moreover, he declared, “NOTHING GETS THROUGH unless we want it to.”
The comments came amid reports that Trump is considering sending a second military force against Iran.
Recent Retaliation Attacks
As tensions in the region seemed to grow, Iran said they would retaliate against U.S. military bases in Jordan and Kuwait. The war protests reportedly came after the U.S. military attacked Iran upon the downing of an American Army helicopter.
There were also reports of activity around U.S. military bases in the Gulf area amid Trump’s new posts. CNN reported that the video taken in Bahrain was a flash of light from near a U.S. base.
Earlier, Israel and Iran’s strikes in Lebanon exacerbated the bearish sentiment for Bitcoin and the overall crypto market.
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