Bitcoin Price Crash to Continue as US-Iran Attack is “Imminent”?

Tensions between the U.S. and Iran have reached a critical point, with reports suggesting that war is imminent. The U.S. military has significantly increased its presence in the Middle East, deploying two aircraft carriers, 12 warships, and hundreds of fighter jets. This build-up follows months of escalating rhetoric and military operations aimed at curbing Iran’s nuclear program and deterring further aggression from the regime.

According to Axios, Israel is preparing for a potential conflict within days, signaling a joint U.S.-Israeli campaign that could be far more extensive than previous military operations in the region. The Trump administration’s decision to bolster military forces signals an imminent escalation that would significantly impact the geopolitical landscape of the Middle East.

US Military Preparations and Strategic Deployments

In response to increasing threats, the U.S. military has ramped up its operations, moving substantial amounts of armaments and aircraft to the region. Over 150 U.S. military cargo flights have delivered weapons systems, while an additional 50 fighter jets, including F-35s, F-22s, and F-16s, have been deployed in the past 24 hours. 

These preparations mark a substantial shift in the U.S.’s military readiness, with many analysts suggesting that a strike on Iran could occur sooner rather than later.

This strategic build-up includes sophisticated air defense systems, which could play a crucial role in any potential conflict. U.S. officials have noted that the current situation is more critical than the previous operation against Iran’s underground nuclear facilities, as this new campaign is expected to last much longer and be far more impactful.

Diplomatic Talks Stall as War Preparation Continues

Despite ongoing diplomatic efforts to resolve the tensions, a breakthrough seems increasingly unlikely. U.S. officials have expressed skepticism about the progress of talks, with Vice President Vance noting that while the discussions had some positive moments, Iran has yet to show a willingness to make the necessary concessions regarding its nuclear program. 

With the clock ticking, it appears that the Trump administration is preparing to pivot toward military action if diplomatic channels continue to stall.

The Israeli government, which has long been in favor of a more aggressive approach to Iran, is reportedly preparing for the possibility of regime change within Iran. This maximalist strategy has the potential to involve direct military strikes targeting Iran’s nuclear and missile programs, marking a significant escalation from previous Israeli operations in the region.

Meanwhile, the Polymarket traders are also responding to the escalating tensions between the U.S. and Iran, with a significant increase in the probability of U.S. military strikes before the end of March. Odds for such an event have surged by 42% in just a few days, reflecting growing sentiment in the market that military action is becoming increasingly likely.

Bitcoin Price Continues to Suffer Amid Geopolitical Uncertainty

As the geopolitical situation grows tenser, Bitcoin’s price is feeling the effects of market uncertainty. The cryptocurrency, which saw significant highs in recent months, has experienced a notable decline, falling well below its all-time high of $126,300. Bitcoin’s price is currently hovering around $67,420, reflecting ongoing concerns over institutional demand in the U.S. Analysts suggest that the downturn is partly due to reduced buying activity from American investors, further amplified by the volatile geopolitical climate.

Bitcoin’s price drop is compounded by uncertainty in the broader financial markets, particularly as the U.S. military gears up for a possible confrontation with Iran. Analysts have warned that Bitcoin could see further declines in the short term, especially with the lack of major institutional purchases. The Coinbase Premium Index, which tracks the demand for Bitcoin on the exchange, remains in the red, indicating weak investor sentiment.

Source: X

Concurrently, analysts are pointing to the CVDD (Cumulative Value Days Destroyed) as a critical support level for Bitcoin during a bear market. As CryptoBullet notes, every bear market sees Bitcoin testing the CVDD price, which tends to act as the ultimate support level, often marking the bear market bottom. Currently, the CVDD level stands at $47k, and this price point aligns closely with the next target for Bitcoin price should the bearish momentum continue.