Bitcoin Slides After Trump Iran Tariff Sparks Global Market Jitters

Bitcoin prices pulled back sharply in the last few hours, slipping to $91,800 after briefly testing resistance above the $92,000 level, as global markets reacted to fresh geopolitical shockwaves from Washington. The sudden move followed an announcement by Donald Trump, who revealed plans to impose a 25% tariff on any country trading with Iran, reigniting uncertainty across risk assets.

Bitcoin Fails to Hold Key Resistance Levels

Bitcoin’s rejection above $92,000 is technically significant. Market data shows that the $92K–$93K zone has acted as a strong resistance band, with heavy sell orders clustered in that range. Within a three-hour window following the tariff announcement, Bitcoin saw a 1.4% intraday decline, erasing nearly $12 billion in total crypto market capitalization.

Trading volume spiked by approximately 18% compared to the 24-hour average, suggesting panic-driven selling rather than a slow technical pullback. On-chain analytics also indicate a rise in short-term profit-taking, with exchanges recording a 9% increase in BTC inflows, a classic signal of traders preparing to sell.

Geopolitical Uncertainty Hits Risk Assets

The announcement of tariffs targeting Iran-linked trade partners reintroduced a layer of geopolitical risk that markets had largely priced out in recent weeks. Historically, Bitcoin has shown mixed behavior during geopolitical crises. While often labeled a “digital safe haven,” short-term data suggests Bitcoin behaves more like a risk-on asset during sudden macro shocks.

Over the past three years, Bitcoin has declined an average of 1.8% within 24 hours of major geopolitical trade announcements, according to aggregated market data. This current pullback aligns closely with that trend.

Broader Crypto Market Feels the Pressure

The ripple effect extended beyond Bitcoin. Ethereum dropped 1.9%, while large-cap altcoins such as Solana and Avalanche declined between 2.5% and 3.2% during the same trading session. The Crypto Fear & Greed Index slipped from 72 to 66, signaling a fast transition from “Greed” toward a more neutral sentiment.

Stablecoin dominance rose by 0.4%, indicating that traders are temporarily parking capital on the sidelines while assessing macro risk. This behavior is consistent with previous uncertainty-driven corrections rather than the start of a prolonged bear cycle.

Global Trade Concerns Add Fuel to Volatility

Iran remains a key player in global energy and regional trade, and any policy affecting its trading partners carries broader economic implications. Analysts estimate that countries trading directly with Iran account for nearly 18% of global crude oil exports. Even the perception of supply disruption tends to push investors toward safer assets.

Following the tariff news, gold prices climbed 0.6%, while U.S. Treasury yields dipped slightly, reinforcing a classic risk-off rotation. Bitcoin, despite its long-term bullish narrative, followed equities lower in the immediate reaction.

What Comes Next for Bitcoin

From a technical standpoint, Bitcoin remains above its 50-day moving average near $89,500, preserving its broader bullish structure. However, momentum indicators such as the Relative Strength Index (RSI) cooled from 68 to 61, suggesting reduced buying pressure.

If Bitcoin fails to reclaim $92,000, analysts see potential consolidation between $90,200 and $91,500. A breakdown below $90,000 could open the door to a deeper retracement toward $88,000, a level with strong historical demand.