Bitcoin dropped below $65,000 on Thursday after President Donald Trump threatened an intensified strike on Iran in response to attacks on U.S. forces. Houthi attacks on Saudi oil tankers pushed crude above $100 a barrel, stoking inflation fears that could weaken demand for riskier assets.
Bitcoin slipped below $65,000 on Thursday after U.S. President Donald Trump threatened a larger military strike on Iran, a response to attacks on U.S. forces in the region. The token fell to $64,831.54, down 1.52% at press time on July 23.
The decline tracked growing geopolitical tension and rising energy prices, as investors pulled back from riskier assets.
Trump weighs a bigger attack
Trump said he was considering further U.S. military action against Iran but had not yet reached a decision. Speaking to Axios, he said: “I am considering a massive attack. Bigger than ever before.”
He added that Israel could join an operation if asked, though he added that the U.S. did not need help to act. Trump also warned of consequences should Israel intervene, which suggested Iran might retaliate.
Houthi tanker attacks push oil past $100
The escalation followed a series of attacks by Iran-backed Houthi rebels on Saudi oil shipping vessels in the Red Sea and other congested shipping lanes. The disruption pushed crude oil above $100 per barrel.
That surge raised fears that higher energy costs would worsen U.S. inflation. As a result, demand for riskier assets like Bitcoin could weaken if the Federal Reserve turns hawkish.
Diplomacy stalls
Trump accused Tehran of not being serious about diplomacy, saying it had not yet faced enough pressure. According to other regional sources, Iranian leaders had rejected the latest offer in the mediation process.
The White House has not issued new military orders, and two U.S. government officials said no decision had been made. Trump said the Iranians wanted to negotiate but were not ready to agree to a deal.
Source: CoinGape
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