Global markets expected good news on Iran war de-escalation and oil supply resumption from US President Donald Trump’s address to the nation. However, the speech rattled investors across crypto and equities, causing Bitcoin price to fall to $66K and erasing more than 550 billion from US stock futures.
President Donald Trump’s Speech Offers No Clear Timeline on Ending US-Iran War
Bitcoin price and the US stock market were advancing higher hours before Trump’s address to the nation, with investors widely expecting cues on ending the US-Iran war.
However, Trump said the US is going to “hit” Iran “extremely hard” over the next two or three weeks, sending crude oil prices to rise by 5% to above $104. He emphasized that military objectives are nearing completion and warned of potential further strikes on electric infrastructure if no deal is reached.
The US dollar index (DXY) climbed 0.33% to 100, causing investors to scale back expectations for Fed rate cuts this year. The US 10-year Treasury yield jumped to 4.376% amid concerns that an energy crisis will drive inflation higher. As a result, gold and silver prices dropped more than 2% and 4%, respectively.
Moreover, Trump offered no stance on the reopening of the Strait of Hormuz. Instead, he urged countries to buy from the United States. Meanwhile, Iran demands payment in Chinese yuan or crypto to cross the Strait of Hormuz.
As CoinGape reported earlier, the UAE is pushing for a UN Security Council resolution to reopen the Strait of Hormuz. The Gulf country is also willing to join the U.S. and allies to open the channel in an effort to restore oil supply.
Bitcoin Price and Broader Crypto Markets Selloff Amid Escalation Fears
Bitcoin price fell more than 2% to $66K after President Trump’s speech on the Iran war, tracking the US futures. Ethereum, XRP, Solana, Dogecoin, and the broader crypto market tumbled sharply.
At press time, Bitcoin price is trading at $66,393, with a 24-hour high and low of $69,230 and $66,502, respectively. Trading volume has also dropped by more than 8% over the past 24 hours.
CoinGlass data showed massive selling in the derivatives market. At the time of writing, the total BTC futures open interest fell 2.50% to $46.49 billion in the last 4 hours. BTC futures open interest on CME and Binance tumbled more than 2.70% and 2.96%, respectively. This signals bearish sentiment among derivatives traders.
BTC Futures Open Interest. Source: CoinglassNegative Coinbase Premium suggests Bitcoin price still has untapped demand from US investors. Crypto analyst warned of a deeper pullback if selling pressure continues to mount.
Market experts Lyn Alden and Rory Johnston pointed out that markets “didn’t really learn anything more from Trump’s Iran War address, but those things he reaffirmed are likely going to continue driving crude prices higher.”
Source: https://coingape.com/why-is-bitcoin-price-falling-after-president-trumps-speech-on-iran-war/
