Oil prices plunged approximately 28% from a four-year high after President Trump suggested the Iran conflict was nearing completion. Cryptocurrencies saw modest gains above key levels, with analysts noting digital assets are following broader risk sentiment driven by oil price volatility and geopolitical uncertainty.
Oil prices fell dramatically from around $118 to approximately $85 while cryptocurrencies posted modest gains on Monday. This market movement followed comments from US President Donald Trump who told CBS News that the war in Iran was “very complete, pretty much.” The price drop was according to data from OilPrice.
However, Trump later escalated rhetoric in a post on Truth Social, threatening a severe response if Iran disrupted oil flow. “If Iran does anything that stops the flow of oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far,” he stated. Crypto markets rose 3.1% over 24 hours, with Bitcoin reclaiming $70,000 and Ether hovering above $2,000.
Augustine Fan, partner at SignalPlus, said it is hard to take headline comments at face value given conflicting signals. “Crypto prices will continue to follow other risk assets without a fundamental narrative of its own in the near term, and macro leadership will still be driven by oil,” he told journalists. Andri Fauzan Adziima, research lead at Bitrue, noted a potential for a strong relief rally if de-escalation proves accurate.
Adziima added that doubts persist amid mixed signals from Iran and potential for prolonged uncertainty. Iran’s Revolutionary Guard reportedly responded by calling Trump’s comments “nonsense.” Fan concluded that the conflict is not expected to be resolved soon, anticipating tradable bounces with Bitcoin potentially performing relatively better.
