Trump Threatens to Destroy Iran's Nuclear Power Plants; Bitcoin Quickly Recovers $60 Billion in Market Value

Gate News reports that on March 24, Bitcoin (BTC) rebounded above $71,000 in early trading after losing $60 billion in market value over the weekend due to Trump’s threat to destroy Iran’s nuclear power plant. Fifteen minutes after Trump’s statement last Saturday, Bitcoin rapidly dropped from $70,100 to $68,200, causing the global digital asset market cap to evaporate by approximately $37 billion instantly, with over $240 million in leveraged positions forcibly liquidated.

Before threatening the power plant, Trump indicated that the U.S. was considering a phased end to the war. Influenced by this optimistic remark, Bitcoin briefly approached $71,000. However, after he issued a pessimistic statement, traders holding leveraged long positions faced massive forced liquidations. The Coinglass Fear & Greed Index fell to 9, indicating extreme market panic. During this volatility, the cryptocurrency market remained one of the few with high liquidity, bearing the brunt of the impact, while global stock, bond, and commodity futures markets were all closed.

Analysts note that since late February this year, Bitcoin’s hash rate has decreased by about 100 EH/s, with Iran and Gulf countries accounting for 8% to 10% of the global hash rate. Potential attacks on power plants could paralyze local mining operations and accelerate the withdrawal of safe-haven funds from the crypto market. As of Sunday night, Bitcoin has fallen 23% this year, while Ethereum and Ripple have declined 31% and 26%, respectively.

The 48-hour deadline set by Trump to reach an agreement on the Strait of Hormuz will expire tonight. The market remains highly attentive to the developments and the impact of geopolitical risks on cryptocurrency volatility. These events highlight the crypto market’s sensitivity to global political risks and the price fragility of digital assets like Bitcoin and Ethereum in high-leverage environments.