‘Operation Epic Fury,’ which began on the 27th of February under U.S. President Donald Trump, has since then shaken the crypto market.
After witnessing the New Year optimism in January 2026, the crypto market derailed with BTC dropping from a high of $96,000 in mid-January to $65,000 by the 28th of February.
This downward trend continued, and even after multiple attempts, Bitcoin was unable to reclaim the $75,000 mark.
President Donald Trump’s threat jitters nations worldwide
Needless to say, this high level of volatility persisted until U.S. President Donald Trump made nuclear threats directed towards Iran.
Taking to his social media platform – Truth Social, Trump warned,
A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will.
This sent shockwaves through the nation and even the crypto world, which had turned bearish after modest bullish signs just a day before.
Digital assets class vs the traditional asset class
However, if we compare Bitcoin [BTC] and the broader crypto market to the S&P 500, gold, and other traditional asset classes, then it stood strong. In fact, as per a recent report by Polymarket, Iran was also accepting crypto payments as tolls from ships passing through the Strait of Hormuz.
Remarking on the same, Anthony Scaramucci, Financier and former White House Communications Director, in a recent podcast with Galaxy Digital’s CEO Michael Novogratz, said,
One thing that is sticky and seems resilient after crashing 40% is Bitcoin.
Echoing similar sentiments, but with a pinch of uncertainty, Novogratz added,
We’re stuck between some sellers and some buyers. And volumes are way down. It’s a lot less exciting. But there’s no force sellers anymore.
Yet, despite this optimism, the Crypto Fear and Greed Index was in the “Extreme Fear” zone at press time. Mostly swinging between “Fear” and “Extreme Fear” zones amidst geopolitical turmoil, the crypto market has only reflected cautious investor sentiment.
Is Trump’s impeachment around the corner?
Needless to say, the recent threat by Trump had pushed many to call for U.S. President Trump’s impeachment under the 25th Amendment.
That said, the Polymarket odds of Trump’s impeachment before his term ends also stood at 65% at the time of reporting.
Taken together, this shows how Trump’s pro-crypto policies and plans post-becoming the 47th President of the U.S. now seem debatable.
Peter Schiff takes a different route
However, while the entire world was crippling with this news, Peter Schiff, Chief Economist & Global Strategist at Europac, called this threat a bluff as he said,
If they believed there was a reasonable probability that Trump would actually kill Iranian civilization tonight, stocks would be a lot lower and oil a lot higher.
Schiff argued,
If investors don’t believe Trump, why would the Iranian leadership?
Ceasefire and its impact on the crypto market
However, as of the 8th of April, 5:20 AM IST, Prime Minister of the Islamic Republic of Pakistan, Shehbaz Sharif, injected a breath of fresh air globally when he noted,
Now, with an agreement on an immediate ceasefire from both ends, the crypto market turned green.
At press time, the global crypto market cap stood at $2.45 trillion, up 4.42% over the last 24 hours. At the same time, Bitcoin was changing hands at $71,884.44 after surging by 5.04% during the same period.
Final Summary
- The escalating U.S.-Iran tensions had sent the crypto market into the hands of sellers.
- The immediate ceasefire announcement shifted the market from bearish to bullish, but fear remains.
