Bitcoin's price fell below $77,000 on Tuesday following a warning from former President Donald Trump regarding the situation with Iran. The move comes amid heightened geopolitical tensions after joint U.S.-Israeli military actions against Iran earlier this year.
While the confrontation is currently paused, markets remain on edge as nuclear and sanctions negotiations stay stalled. Trump's statements suggest the potential for renewed military action, impacting risk assets globally, including cryptocurrencies. The geopolitical backdrop has increased market sensitivity, with prediction markets now pricing a 72% probability of Bitcoin dipping to $75,000 by the end of May.
The likelihood of Bitcoin reaching $115,000 by May 31 has dropped sharply, with current market sentiment reflecting risk aversion. Investors are watching for further developments in U.S.-Iran relations, potential policy moves from the Trump administration, and any signals from Federal Reserve Chair Jerome Powell.