Crypto traders brace as Trump warns of strikes on Iran

Crypto traders braced for a risk-off open on Monday after President Donald Trump warned Iran of possible strikes on Truth Social, scheduled a Tuesday Situation Room review of military options and U.S. forces airlifted weapons and gear to bases across the Middle East.

The Situation Room review is set for Tuesday and is expected to include Vice President JD Vance, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth.

On Sunday, a Truth Social post from Trump included an image referencing nuclear escalation and the lines “Clock is Ticking” and “there won’t be anything left of them” if a deal with Iran is not reached.

Flight-tracking data showed a U.S. Air Force airlift moving equipment to bases across the region.

Cryptocurrency markets moved on the headlines. Bitcoin traded near $78,312 on Sunday, down about 4% over the prior week. Ether was near $2,188 after a roughly 7.5% weekly decline. Traders described the session as headline-driven and noted both assets were technically vulnerable to further selling if risk appetite fell.

Analysts highlighted the Strait of Hormuz as the key economic risk. Models cited by analysts project crude oil could reach roughly $105 to $165 per barrel depending on how long any closure of the waterway lasted.

Analysts noted higher oil prices would feed into U.S. inflation projections and push up Treasury yields, which can influence expectations for Federal Reserve rate cuts.

Market participants expressed mixed views on the size of any sell-off. Some expected a clear risk-off reaction into Monday and Tuesday. Others said a sustained move higher in Treasury yields would be needed to prompt heavier liquidation. Many planned to monitor Tuesday’s meeting and any additional Truth Social posts for signs of escalation or a return to negotiations.

Former Congresswoman Marjorie Taylor reacted to the prospect of deeper U.S. involvement by warning, “If you send in U.S. military troops into Iran, there is going to be a political revolution in America.”

Traders and analysts expected near-term market moves to be driven by headlines and short-term positioning rather than immediate changes to crypto market fundamentals.