The crypto market is in the red today as the U.S.-Iran war approaches the third week. Bitcoin and other crypto prices are facing renewed pressure as Iran has threatened to increase its use of upgraded weapons after the U.S. attacked Kharg Island, which is the primary sea terminal for Iran’s oil infrastructure.
Crypto Market Faces Fresh Pressure As Iran Conflict Drags On
TradingView data show the crypto market is down today, with its market cap at $2.38 trillion, down from a high of $2.4 trillion yesterday. Bitcoin has led this decline, with the leading crypto dropping below $71,000 today after rising to nearly $74,000 yesterday.
The market decline comes amid Iran’s threat to escalate the conflict against the U.S. According to a Reuters report, Iran has vowed to increase its use of upgraded weapons, especially ballistic missiles and other missiles with greater destructive power.
The threat follows the U.S. strikes on military assets on Iran’s Kharg Island. U.S. President Donald Trump had revealed in a Truth Social post that they “totally obliterated every MILITARY target in Iran’s crown jewel, Kharg Island.”
The crypto market is also facing renewed pressure as Trump threatened to wipe out Iran’s oil infrastructure on the island if they do anything to interfere with the “Free and Safe Passage of Ships through the Strait of Hormuz.”
An attack on the oil infrastructure on Kharg Island is likely to further escalate the conflict and send already volatile oil prices to new highs. The island is the primary sea terminal for Iranian oil, so an attack on it will lead to a greater supply shock.
At the same time, Iran’s new Supreme Leader, Mojtaba Khamenei, has declared that the Strait of Hormuz will remain closed to pressure the U.S. The closure of this Strait, a chokepoint for about 20% of the global oil supply, has so far been the primary driver of rising oil prices, which is pressuring crypto prices.
David Sacks Calls For U.S. To End War
In the latest episode of the All-In podcast, White House AI and Crypto Czar David Sacks called on the Trump administration to end the Iran war, a move that would be a huge positive for the crypto market. “This is a good time to declare victory and get out,” he said.
Sacks noted that the U.S. has already degraded Iran’s military capabilities and that the U.S. should be focusing on finding an off-ramp strategy. He added that de-escalation of the conflict will involve reaching a ceasefire or negotiated settlement with Iran.
However, as CoinGape reported, Trump has signaled that the Iran war will drag on for a while. When asked recently about when the war could end, the president said it would end when he ‘felt it in his bones.’ Trump’s failure to provide a timeline for when the war will end marked a shift from his statement earlier in the week, when he said the war would end soon
Crypto market participants are currently pricing in the possibility of a prolonged conflict between the U.S. and Iran. Polymarket data show only a 16% chance that the conflict will end by the end of March. Furthermore, the odds of the conflict ending by April are currently at 53%.
