Bitcoin Surges as Trump Calls for De-escalation Amid Middle East Tensions

Bitcoin rebounded over 4.5% overnight after former US President Donald Trump publicly called for peace following heightened military tensions between the US and Iran. The swift recovery in Bitcoin’s price highlights the asset’s sensitivity to global geopolitical developments and its emerging role as a barometer of macro uncertainty.

The weekend saw a sharp sell-off in crypto markets as news broke that Iran had launched missiles at US military installations in the Middle East, reportedly in retaliation for strikes on its nuclear facilities. A total of 14 missiles were launched, with 13 intercepted and one allowed to land due to its non-threatening trajectory. No casualties were reported.

Initially, the crypto market reacted with caution, with Bitcoin dipping below the US$100,000 mark. However, Trump’s follow-up message on Truth Social helped calm markets. He praised the US response and signalled an openness to regional peace, writing:

“Perhaps Iran can now proceed to Peace and Harmony in the Region, and I will enthusiastically encourage Israel to do the same.”

This call for de-escalation quickly reversed investor sentiment, with Bitcoin climbing back to trade near US$105,000.

As geopolitical fears eased, investors re-entered the market, particularly into Bitcoin. The asset’s price action illustrates its dual nature, a perceived safe-haven in systemic crisis, but still highly sensitive to near-term volatility and newsflow. According to Santiment, terms like “Iran” and “bases” were among the most searched in crypto forums during the period.

Amid the rebound, former Binance CEO Changpeng Zhao weighed in, urging investors to remain focused on fundamentals:

“Everything before the next all-time high has to be viewed as a dip by definition. Only a small number of strong coins will reach new highs.”

His comments echo a broader industry sentiment, that moments of macro-driven volatility, while jarring, often reinforce long-term conviction in assets with staying power.

Periods of geopolitical stress like these reinforce why diversification into hard assets, such as Bitcoin, gold and silver, remains a strategic hedge in today’s uncertain world. While short-term volatility is inevitable, long-term fundamentals for decentralised and scarce assets remain strong.