Crypto Market Drops as Trump Rejects Iran Proposal, Warns of Possible Strikes
Summary
The crypto market cap fell 2% to $2.42 trillion after Donald Trump dismissed Iran’s ceasefire proposal and warned of strikes if the Strait of Hormuz is not reopened.
Iran rejected a 45-day ceasefire plan, instead demanding sanctions relief and war compensation as tensions escalate.
Bitcoin slipped below $69K, while major altcoins declined 1–2% amid rising uncertainty.
The cryptocurrency market turned lower, dropping 2% to a total valuation of $2.42 trillion after U.S. President Donald Trump stated that Iran’s proposal to end the ongoing Middle East conflict was “not enough” to halt potential U.S. strikes.
Speaking to reporters, Trump acknowledged that the proposal marked progress but emphasized it fell short of expectations. He stressed that Iran must take concrete steps—particularly reopening the Strait of Hormuz—to avoid military action. Negotiations, he added, are still ongoing through intermediaries.
The Strait of Hormuz, a critical route for global energy shipments, has effectively been disrupted following clashes between U.S. and Iranian forces in the Gulf. The situation has driven oil prices sharply higher, fueling fears of inflation and putting pressure on both traditional and crypto markets.
A Tuesday deadline remains in place, with Trump warning that failure to comply could trigger strikes on key Iranian infrastructure.
Earlier, Pakistan proposed a 45-day ceasefire in an effort to de-escalate tensions between Iran, the U.S., and Israel. However, Iran reportedly rejected the proposal, calling instead for a permanent resolution, including sanctions relief and compensation for war-related damages.
How Are Crypto Markets Reacting?
Markets initially rallied to $2.47 trillion on optimism around a potential peace agreement. However, sentiment quickly reversed after Trump reaffirmed the possibility of military action, pushing total market value back down to $2.43 trillion.
Bitcoin briefly surged above the key $70,000 resistance level before retreating sharply, trading around $68,500 at the time of writing.
Major altcoins—including Ethereum, BNB, XRP, and Solana—declined between 1% and 2%, reflecting cautious sentiment among traders.
What Comes Next?
The market now hinges on geopolitical developments:
De-escalation scenario: A confirmed peace agreement could boost risk appetite, potentially triggering a strong rebound in crypto prices.
Escalation scenario: If strikes proceed, markets may see a flight to safety, leading to a deeper correction across digital assets.
