Trump "If no deal, bomb again"... Bitcoin gives up $77,000

▲ U.S. President Trump

As U.S. President Donald Trump made a strong statement threatening to resume airstrikes if peace talks with Iran fail, the unbridled Bitcoin (BTC) rally came to an abrupt halt. The market, which had been heating up with geopolitical tailwinds, was startled by the word 'resumption of bombing,' quickly surrendered the $77,000 line, and entered a fierce waiting game, hunkering down.

According to cryptocurrency market data aggregator CoinMarketCap on April 18 (local time), as of 1:35 PM KST, Bitcoin was trading at $76,959, up 2.87% from 24 hours ago, but slightly down from its peak. The $77,000 mark, which was considered a psychological support level and a new stepping stone for growth, collapsed without resistance. Ethereum (ETH) is at $2,402, XRP at $1.46, and the total market capitalization of virtual assets is hovering around $2.6 trillion. The Fear & Greed Index, which indicates market sentiment, stands at 61, maintaining the 'Greed' phase, but the explosive upward momentum seen in the early stages of the rally has noticeably slowed.

The direct cause of the sudden price drop was President Trump's tough warning issued aboard Air Force One last night. He warned that if an agreement with Iran is not reached by the 22nd, there will be no extension of the ceasefire, and bombs might have to be dropped again along with maintaining the naval blockade. Investors, who had shown aggressive buying in relief at the news of Iran opening the Strait of Hormuz, immediately reduced their long positions (buy) and turned to a strong wait-and-see stance in response to the chilling warning that the flames of war could reignite within days.

The core trigger of the conflict is whether Iran will abandon its highly enriched uranium. President Trump declared that if an agreement is signed, all of Iran's nuclear material will be brought to the U.S., and if refused, it would be taken in a less friendly manner. This is effectively interpreted as an ultimatum implying military action. Fear is rapidly spreading that if negotiations are not concluded by the temporary ceasefire deadline for Israel and Lebanon and the absolute deadline for these talks – 21st US Eastern Time, 22nd Iran local time – a massive Middle East-originated negative factor could once again engulf the virtual asset market.

However, the reason the market did not lead to an extreme sell-off is due to the positive afterglow left by President Trump. He did not reveal specific details but stated that he had heard 'quite good news' a short while ago, evaluating the Middle East situation as progressing positively. He also employed a carrot-and-stick strategy, mentioning that Chinese President Xi Jinping was also very pleased with the opening of the Strait of Hormuz. President Trump's continued confidence in reaching a peace agreement is serving as a minimal defense mechanism, preventing complete downward pressure on the market.

Market experts predict that Bitcoin's price will experience extreme volatility, a 'rollercoaster' market, leading up to the fateful deadline on the 22nd. If the U.S. and Iran dramatically finalize a peace agreement, suppressed institutional funds will pour back in, sending Bitcoin directly towards $80,000. However, if negotiations fail and airstrikes on Iranian soil resume, a disaster could unfold with a sharp drop to the low $70,000s. It is a precarious situation where the fate of the entire virtual asset market is thoroughly mortgaged to President Trump's words and the geopolitical timeline of the Middle East.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*