Bitcoin (BTC) 'Screams' as Trump Strikes Iran... Warning of Drop to $70,000

▲ US, Iran, Bitcoin (BTC)/ChatGPT generated image

U.S. President Donald Trump's additional warning to Iran shook the cryptocurrency market. Bitcoin (BTC) fell below $77,000, but the possibility of a re-breakout after a similar pattern to its 2023 bottom formation was raised.

According to Benzinga on September 1 (local time), Bitcoin fell 1.92% over 24 hours. Ethereum (ETH) dropped 2.61%, XRP 3.29%, Solana (SOL) 3.59%, and Dogecoin (DOGE) 2.38%. Bitcoin dipped below $77,000 during the session, and Ethereum fell below $2,400. The global cryptocurrency market cap also decreased by 1.86% over 24 hours, recording $2.6 trillion.

The U.S. military launched additional attacks on Iranian targets near the Strait of Hormuz. Trump stated that the attacks were in response to Iran's “failed attempt to plant naval mines.” He further warned that if Iran retaliates against the U.S.'s “justified attacks,” additional responses could follow. The Dow Jones Industrial Average fell 419.02 points, or 0.79%. The S&P 500 and Nasdaq Composite also fell by 0.71% and 1.03%, respectively. MicroStrategy (MSTR) dropped 6.06%, and Bitmine Immersion Technologies (BMNR) fell 7.70%.

In the cryptocurrency market, long positions exceeding $250 million were liquidated. Bitcoin's open interest also decreased by 2.84% over 24 hours. In contrast, Binance's investor sentiment, which reflects institutional investors' outlook and fund allocation, shifted to “extreme bullish.” The crypto Fear & Greed Index also remained in a “greed” state. This indicates a mixed trend between price declines and investor sentiment indicators.

Crypto analyst and trader Ali Martinez analyzed that Bitcoin could show movements similar to its 2023 bottom formation process. At that time, Bitcoin tested the upper trendline of a descending channel several times before breaking out. Martinez stated, “If history repeats itself, after several failed breakouts, it could correct to the mid-range near $70,000, followed by a decisive breakout.”

On-chain analytics firm CryptoQuant analyzed that, unlike the price rebound, Bitcoin's underlying on-chain structure is relatively weak. It also diagnosed that holders continue to realize profits. The Net Realized Profit/Loss (NPL) indicator significantly rose twice last month, approaching its highest level of the year, excluding the sharp decline in January-February. CryptoQuant stated, “The pressure has not disappeared but has changed from acute to chronic.” It added, “The price direction depends on whether weakening spot demand or persistent realized profits collapse first.”

[Article Key Summary]

-Bitcoin, Ethereum, XRP, Solana, and Dogecoin all fell sharply amid Trump's additional warning to Iran.

-While Bitcoin long position liquidations exceeded $250 million, Binance institutional investor sentiment shifted to extremely bullish.

-Ali Martinez suggested that if a pattern similar to 2023 repeats, Bitcoin could consolidate around $70,000 before a decisive breakout.

*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.*