Bitcoin & Gold Drop Simultaneously After Donald Trump’s Statement on US Arms Stockpiles

Jakarta, Pintu News – Geopolitical tensions between the United States and Iran have once again shaken global financial markets following US President Donald Trump’s remarks on his country’s stockpiles. Trump said that America’s ammunition stockpile is at the highest level in history and even described it as almost unlimited.

This statement immediately sparked concerns that the conflict in the Middle East could last longer than expected. The impact was felt across various asset markets, including crypto and cryptocurrencies as well as precious metal commodities.

The market reaction was swift. Bitcoin (BTC) and gold prices, which were previously considered hedge assets, came under pressure. Investors began to re-evaluate their positions amid rising geopolitical risks, potential inflation, and uncertainty over US monetary policy.

Trump’s remarks spark fears of a prolonged war

In his statement, Donald Trump emphasized that the United States’ ammunition stocks are at medium to high levels and can support military operations over a long period of time. He even mentioned that the conflict could last “forever” if necessary. This statement is seen by the market as a signal that the confrontation with Iran has the potential to develop into a prolonged conflict.

The statement was also made in conjunction with the increasing intensity of military operations involving the United States and Israel against Iran. The main purpose of these operations is said to be to prevent Iran from acquiring nuclear weapons capabilities. However, the escalation of the conflict has increased global uncertainty, especially regarding economic stability and energy supply.

On the other hand, Iran responded by increasing pressure in the Middle East region. One of the moves that triggered market attention was the threat to shipping lanes in the Strait of Hormuz, which is one of the most important energy trade routes in the world. Disruption in this route has the potential to disrupt global oil distribution and push energy prices up sharply.

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Bitcoin (BTC) Corrects, Trading Activity Increases

In the midst of this situation, the price of Bitcoin (BTC) has corrected about 3% in the last 24 hours. The largest crypto asset is trading in the range of $67,946 or around Rp1,148,000,000 with a daily low of $65,303 or around Rp1,104,000,000 and a high of $70,044 or around Rp1,185,000,000.

Despite the price drop, trading activity has increased sharply. Bitcoin transaction volume reportedly jumped by around 40%, indicating high trader activity amid market volatility. This shows that investors are still actively repositioning in the crypto and cryptocurrency market despite the unclear price direction.

In terms of technical analysis, Bitcoin is moving within a narrow range on the Bollinger Bands indicator and below major moving averages such as MA50, MA100, and MA200. This suggests that bearish pressure is still quite dominant in the short term. Data from the derivatives market also showed mixed sentiments, where Bitcoin futures open interest rose nearly 4% to around $44.48 billion.

Gold Falls on Dollar Strength and Bond Yields

Not only Bitcoin, gold also experienced strong pressure after Trump’s statement. The spot gold price reportedly fell by about $100 per ounce in just about 90 minutes, breaking through the $5,300 per ounce level.

The decline in gold prices coincided with the strengthening of the US dollar index and the rise in US government bond yields. When the dollar and yields rise, gold usually becomes less attractive because it does not provide a yield like bonds. This has led some investors to reduce exposure to the precious metal despite rising geopolitical uncertainty.

At the same time, tensions in the Middle East also pushed oil prices up. Potential disruptions to energy supplies have made markets start to factor in the possibility of higher inflation. If inflation picks up, central banks such as the Federal Reserve will likely delay interest rate cuts.

Fed Policy Expectations Change

Rising energy prices and geopolitical risks have also affected US monetary policy expectations. Based on data from the CME FedWatch Tool, the chances of a rate cut in the near future are declining and are now more likely to occur in September.

This change in expectations has a direct impact on various asset classes. When interest rates are expected to stay high for longer, riskier assets like stocks and crypto can come under pressure. At the same time, gold also doesn’t always benefit if dollar strength is the dominant factor.

This situation creates a highly uncertain market environment. Global investors have to consider many factors at once, ranging from geopolitics, energy prices, inflation, to monetary policy.

Market Volatility Expected to Continue

Uncertainty fueled by the US-Iran conflict has seen volatility in global markets rise sharply. Bitcoin (BTC), gold, stocks and energy commodities are all reacting to ever-changing geopolitical developments. Under these conditions, capital flows can move quickly between asset classes.

Apart from Bitcoin, other crypto assets such as Ethereum (ETH), XRP, and Solana also have the potential to experience significant price fluctuations. Crypto market movements are highly sensitive to changes in global sentiment, especially when investors seek high liquidity amid uncertainty.

Therefore, market participants are advised to continue monitoring geopolitical developments as well as global economic policies. Conflicts that show no sign of abating may keep volatility high for some time to come.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash beforeinvesting. All activities of buying and selling Bitcoin (BTC) and other crypto asset investments are the responsibility of the reader.

Reference

Coingape. Bitcoin, Gold Slip As Donald Trump Says Unlimited Munition Stockpiles For US-Iran War. Accessed today.