Bitcoin Tanks 12% as Trump Fuels War Fears—Here’s Why Crypto Markets Are Panicking
Geopolitical tensions send BTC into freefall
Bitcoin bled out today as former President Trump's hawkish rhetoric lit a fuse under global markets. The crypto king dropped 12% in 6 hours—its sharpest decline since the 2022 FTX collapse—as traders fled to stablecoins.
War drums beat louder
Trump's latest UN speech hinted at military action against Iran, triggering a classic risk-off scenario. Gold spiked 3% while BTC futures saw $240M in liquidations. 'Crypto's supposed to be uncorrelated,' muttered one hedge fund manager while adjusting his tinfoil hat.
Institutional players hit the brakes
Three whale wallets moved 8,200 BTC to exchanges in the past hour—a classic distress signal. Meanwhile, the Crypto Fear & Greed Index plunged from 'Greed' to 'Extreme Fear' faster than a DeFi rug pull.
The silver lining? This dip will separate the diamond hands from the leverage junkies. Just remember: Wall Street still buys the rumor and sells the news—they just do it with your Bitcoin now.
Bitcoin ($BTC), the flagship cryptocurrency, has recorded a massive price dip at the beginning of August 2025. Hence, Bitcoin has declined to nearly $113,164 amid the escalating war speculation, while the U.S. President Donald Trump has deployed a couple of nuclear submarines for attacks against Russia. This has raised market anxiety, sending a wave of turbulence across the market. Additionally, this raises alarms concerning further market decline if the respective war drama continues.
Bitcoin Plunges 7% Amid Nuclear Submarine Deployment by Trump
As soon as Trump announced the deployment of two nuclear submarines to attack Russia from some “appropriate regions,” the crypto market, including bitcoin ($BTC), saw a huge blow. As a result of this, Bitcoin is now changing hands at $113,164, denoting a notable 7% decrease from $123K, its latest ATH. This plunge has triggered market-wide concerns for additional downturn as the geopolitical outlook is continuously worsening.
However, the market members are not just chatting about the above-mentioned subs, as TRUMP has moved further. In this respect, he has asserted that the Labor Department has been manipulating data related to jobs to back Kamala Harris. Keeping this in view, he has called for the Commissioner Erika McEntarfer’s resignation. Apart from that, he has also criticized Jerome Powell, the Chairman of the Fed, while demanding instant rate cuts.
Rising Inflation Shifts Bitcoin Skeptic Ray Dalio’s Stance
Despite this chaotic situation, Ray Dalio, who used to be among the top Bitcoin skeptics, appears to be changing his viewpoint, as mentioned in his recent interview. He suggested the allocation of a portfolio’s 15% portion to gold or Bitcoin ($BTC) in the form of a hedge against surging U.S. debt. On the other hand, Bitcoin futures premiums have also been narrowed down because of such chaotic backdrop.
According to the reports, amid the continuous slump as seen during the initial days of this month, Bitcoin futures premiums are currently standing at almost 6%. This signifies that the traders are currently not very confident about the wider bullish momentum. Overall, as per the market onlookers, this decline seems to be short-term and could trigger a broader upsurge in the coming days.
