U.S. Strikes Iran... Cryptocurrency Market Volatile as Middle East Risks Rise

U.S. President Donald Trump issued a warning of "much stronger military retaliation if there is any reprisal" following a precision strike on Iran's nuclear facilities, amplifying concerns over the Middle Eastern situation. As geopolitical risks increased, the virtual asset (cryptocurrency) market also responded sensitively, with major coins simultaneously recording declines.

As of 12:03 PM (local time) on the 21st, most major virtual assets showed a downward trend. According to Binance, the top cryptocurrency by market capitalization, Bitcoin (BTC), dropped by 1.11% to $102,366, while the second-largest, Ethereum (ETH), plunged by 6.51% to trade at $2,265.61. Ripple (XRP) fell by 3.32% to $2.06, and Solana (SOL) declined by 3.73% to $134.76.

Meme coins and altcoins also saw sharp declines. Dogecoin (DOGE) dropped by 5.36% to $0.1541, and Cardano (ADA) fell by 5.90% to $0.5499. Stellar Lumens (XLM) recorded a 3.16% decrease at $0.2356.

The market is paying close attention to the possibility of escalating military tensions in the Middle East following the U.S. strike on Iran’s nuclear facilities. In particular, concerns are rising that potential Iranian retaliation and the intensity of further U.S. responses could heighten risk aversion in the market.

Ray Takeyh, a senior fellow for Middle Eastern studies at the Council on Foreign Relations (CFR), said in an interview with The New York Times, "This military operation marks a new phase and potentially a very dangerous turning point for the Middle East."

He added, "From every perspective, this airstrike is a humiliating event for the Iranian regime," and predicted, "Iran’s political leadership will face strong internal calls for retaliation." He continued, "It is also possible that Iran could launch counterattacks against U.S. military bases or American allies," and assessed, "a response aimed at quelling domestic criticism and restoring the regime’s pride is inevitable."