Bitcoin Market Jitters as Iran Prepares Retaliation Against U.S.

Cryptocurrencies experienced significant swings during midday U.S. hours on Monday, with bitcoin (BTC) briefly sliding back below $100,000 on news reports that Iran could be preparing to attack U.S. bases in the Middle East. Other major cryptocurrencies also erased a part of their gains, with Ethereum's ether (ETH) falling below $2,200 and XRP plunging back below $2 before stabilizing around those round-number levels.

The broad-market CoinDesk 20 Index lost around 3% during the U.S. morning session but was still slightly up over the past 24 hours. At press time, bitcoin had returned to modestly above the $100,000 mark, with the Sunday low in prices at roughly $98,500.

Axios reported that the Trump administration was preparing for Iran to attack U.S. bases in the Gulf in retaliation for the U.S. military bombarding three Iranian nuclear sites over the weekend. American bases in Qatar, the United Arab Emirates, and Kuwait were targeted. The report noted that the president was imminently set to meet with his national security team to discuss the threat.

"Bitcoin's recent fall is being driven by a potent mix of geopolitical tension and macro uncertainty," said Kirill Kretov, senior automation expert at CoinPanel. "As conflict in the Middle East escalates, global risk appetite has sharply declined."

The volatility in the cryptocurrency market highlights the sensitivity of digital assets to geopolitical tensions and macroeconomic uncertainties. Investors should remain cautious and monitor developments closely to make informed decisions about their investments.

As seen in the image below, the cryptocurrency market experienced significant swings on Monday amidst geopolitical tensions:

Investors should stay informed and vigilant as geopolitical events continue to impact the cryptocurrency market.