Bitcoin extended its recovery on Tuesday and Wednesday after softer than expected US inflation data pushed the cryptocurrency to a multi week high of $65,000.
However, the rally now faces fresh uncertainty as tensions in the Middle East intensify, with reports revealing details of US President Donald Trump’s latest military strategy toward Iran.
Reports Outline New US Military Plans
After weeks of observing a fragile ceasefire, the conflict between Iran and its adversaries has reignited, with both sides reportedly exchanging strikes almost daily. President Trump declared that the previous memorandum of understanding had effectively collapsed, signaling a new phase in the conflict.
According to several reports, Trump convened senior national security officials in the White House Situation Room on Tuesday to discuss expanding military operations against Iran.
The meeting reportedly included Vice President JD Vance, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, CIA Director John Ratcliffe, special envoy Steve Witkoff, and other senior officials.
Reports suggest the proposed strategy would broaden military operations beyond the current focus around the Strait of Hormuz and could include strikes on additional strategic targets inside Iran.
Axios also reported that discussions centered on plans for what were described as devastating attacks on key Iranian infrastructure. Trump was also quoted as warning that Iran should “make a deal” or risk severe consequences. Some observers note that similar rhetoric in previous standoffs was eventually followed by diplomatic de escalation, offering a potential reason for cautious optimism.
Could Bitcoin Lose Momentum?
The renewed geopolitical uncertainty comes at a sensitive moment for Bitcoin.
The cryptocurrency had just regained bullish momentum after June’s US Consumer Price Index report showed inflation slowing more than expected, reducing expectations that the Federal Reserve would tighten monetary policy further.
That optimism helped lift Bitcoin to around $65,000 after it had fallen below $58,000 earlier this month.
Historically, however, sharp escalations in geopolitical conflicts have weighed on risk assets, including Bitcoin, while boosting demand for traditional safe havens and pushing oil prices higher.
If the reported military plans move forward and regional tensions escalate further, Bitcoin could face renewed selling pressure, potentially giving back part of its recent gains as investors shift toward a more risk averse stance.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
