Bitcoin Price Analysis: BTC Dips As Trump’s Iran Threats Spark Macroeconomic Uncertainty

Bitcoin (BTC) and the broader crypto market tumbled on Tuesday as the conflict between Israel and Iran escalated. The US, under President Trump, has also taken a hardline stance, demanding the complete disarmament of Iran’s nuclear program. Trump also threatened Iran’s supreme leader, Ayatollah Ali Khamenei. 

BTC has struggled this week, losing momentum after reaching an intraday high of $108,944. The flagship cryptocurrency plunged to a low of $103,395 before moving to current levels. 

Bitcoin (BTC) Tumbles After Trump’s Remarks Spark Panic 

Bitcoin tumbled after President Trump threatened Iran’s supreme leader, Ayatollah Ali Khamenei, claiming the leader was an easy target as the US and its allies knew where he was hiding. Trump took to his social media platform, Truth Social, stating, 

“We know exactly where the so-called ‘Supreme Leader’ is hiding. He is an easy target, but is safe there — We are not going to take him out (kill!), at least not for now. We don’t want missiles shot at civilians or American soldiers. Our patience is wearing thin. Thank you for your attention to this matter!”

He also demanded Iran’s unconditional surrender. Trump’s comments come amid an escalating conflict between Israel and Iran. BTC dipped over $1,000 after Trump’s comments, dropping to a low of $103,395. 

Chinese Bitcoin ASIC Makers Bringing Production To The US 

Bitmain, Canaan, and MicroBT are set to begin US production as tariff pressures continue to grow. The three companies collectively produce nearly all of the world’s Bitcoin mining application-specific integrated circuits (ASICs). The shift is in response to reciprocal tariffs imposed on China by US President Donald Trump. Chinese goods and services are subject to a 25% tariff after previously crossing 100%. Bitmain is responsible for 82% of Bitcoin ASIC production, while MicroBT accounts for 15% and Canaan around 2%. This gives them a combined 99% share of the global ASIC market. A study by the University of Cambridge noted, 

“The digital mining hardware market exhibits an oligopolistic structure, with the top three manufacturers — Bitmain, MicroBT, and Canaan — commanding over 99% market share.”

This is not the first time geopolitics has impacted the Bitcoin mining industry. In early April, Hashlabs Mining CEO Jaran Mellerud had said that sweeping tariffs could lead to a collapse in demand for Bitcoin mining rigs in the US. Mellerud stated that tariffs would benefit mining operations based outside the US, as manufacturers would look to sell surplus inventory abroad at a lower cost. 

The Blockchain Group Adds To Bitcoin (BTC) Holdings 

Technology firm The Blockchain Group has added to its Bitcoin reserves, purchasing 182 BTC for around $19.6 million. The latest purchase takes the company’s total Bitcoin holdings to 1,653 BTC, valued at around $170 million at current prices. The latest acquisition was funded by a series of recently completed convertible bond issuances of around 18 million euros ($20.7 million). Notable investors include UTXO Management, Moonlight Capital, TOBAM, and Ludovic Chechin-Laurans. According to the announcement, each investor purchased a different part of the company’s bond offerings. 

The Blockchain Group claimed a year-to-date Bitcoin yield of 1,173%, reflecting a notable increase in the ratio of Bitcoin held to its fully diluted share count. The company has added 469 BTC since the beginning of the year and reported over $49 million in gains in the value of its holdings. The acquisition cost stands at $103,000 per Bitcoin, lower than current market prices. The company is also planning to purchase an additional 70 BTC, which would take its holdings past 1,700 BTC. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) has rebounded to reclaim $105,000, with the price up nearly 1%, trading around $105,235. The flagship cryptocurrency has struggled to regain momentum after dropping from $110,000 last week as market sentiment flipped to bearish. As a result, it dipped to a low of $102,832 by Friday before recovering over the weekend. Analysts believe BTC still risks further downside but must stay above $102,000-$103,000 to remain on track for a potential recovery. Bitfinex analysts stated in a market report, 

“If Bitcoin can hold above the $102,000 - $103,000 region for a sustained period, it would suggest that the market is absorbing the selling pressure effectively.”

They added that while some downside risk persists thanks to macroeconomic uncertainty and geopolitical tensions, it presents a potentially risky yet rewarding opportunity for investors. 

“This environment now reflects a high-risk, high-reward opportunity for upside continuation if buyer confidence returns.”

The analysts added that even if the price trends lower, the decline will not be as steep as seen during previous years. Some analysts presented a bleaker outlook, believing that current market and geopolitical conditions could push BTC below the psychological $100,000 price level. Some, like analyst Doctor Profit, believe the flagship cryptocurrency could retreat as low as $93,000. Markets were optimistic about BTC testing its all-time high after it surged past $110,000 last week. However, those hopes were dashed after Israel carried out airstrikes on Iran. Meanwhile, spot Bitcoin ETFs continued to see strong inflows despite market uncertainty. 

BTC traded in positive territory over the previous weekend, rising nearly 3% and moving to $104,378 on Friday. Price action remained positive over the weekend as the flagship cryptocurrency rose 1.15% on Saturday and registered a marginal decline on Sunday to reclaim $105,000 and settle at $105,784. Bullish sentiment intensified on Monday as BTC surged over 4% to cross the 20-day SMA and $110,000 to settle at $110,251. The price fell to an intraday low of $108,335 on Tuesday but recovered to reclaim $110,000 and settle at $110,253. BTC lost momentum on Wednesday, falling 1.42% and settling at $108,687.

Source: TradingView

Selling pressure intensified on Thursday as BTC fell nearly 3%, slipping below the 20-day SMA and settling at $105,828. The price plunged to an intraday low of $102,832 on Friday. However, it recovered from this level to register a marginal increase, reclaim $106,000, and settle at $106,106. Price action was mixed over the weekend as BTC fell 0.59% on Saturday before registering a marginal rise on Sunday to settle at $105,562. BTC raced to an intraday high of $108,944 on Monday as it started the week positively. Despite the positive start, it could not stay at this level and settled at $106,806, ultimately registering an increase of 1.18%. Sentiment turned bearish on Tuesday thanks to the deteriorating situation in the Middle East. As a result, BTC fell over 2%, slipping below the 20-day SMA and $105,000 to settle at $104,518, but not before dropping to a low of $103,395. The current session sees the price marginally up as buyers and sellers struggle to establish control.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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