Bitcoin and Nasdaq futures opened the week lower after U.S. President Donald Trump said he would not rule out additional strikes on Iran before the early November midterm elections, keeping geopolitical risk in focus across global markets.
At 03:30 UTC, bitcoin traded at $83,324, down 1.3%. Major alternative cryptocurrencies including ether, XRP and solana were posting similar losses. Futures tied to the tech-heavy Nasdaq index were down 0.7%.
Oil moved the other way. WTI crude futures rose nearly 1% to $93.28, while Brent crude posted a similar gain, adding another layer of uncertainty for investors already tracking inflation and rates.
Trump says war could end soon but keeps military option open
Trump said Sunday that he expected the war with Iran to end "very soon," but he did not rule out renewed military action before the midterm elections.
According to Fox News, when asked whether strikes could resume, Trump said, "I don't want to say that. I don't want to say that. I mean, it's possible, but I just don't want to say that."
He also said the U.S. would win the war through both military and economic pressure.
Iran says it is prepared for renewed conflict
Iranian Foreign Minister Abbas Araghchi said his country was "fully prepared" for another round of conflict, warning that it could withstand even a potential "doomsday war."
At the United Nations General Assembly, Iran proposed an agreement to reopen the Strait of Hormuz, a major oil chokepoint disrupted by the war, for seven days and pause fighting, followed by broader negotiations on other issues.
Trump rejected the proposal, saying Iran was seeking a deal because it was under heavy pressure. He also wrote on Truth Social that Iran "cannot have a nuclear weapon."
Inflation fears and Treasury yields remain in focus
CoinDesk said the geopolitical uncertainty that has persisted since the war began in early March has fueled inflation concerns and pushed Treasury yields higher.
The 10-year U.S. Treasury yield has climbed 127 basis points to 5.20%, its highest level since 2007, as markets weigh inflation fears, Federal Reserve rate-hike expectations and debt concerns.
Bitcoin still up 42% in three months as traders watch key levels
Bitcoin fell earlier this year but has rebounded sharply in the third quarter. Over the past three months, prices are up 42%, outperforming every major asset class mentioned in the report, including the Nasdaq and gold.
Traders are now looking to incoming U.S. data for the next directional signal.
Vikram Subburaj, CEO of India-based exchange Giottus, said in an email: "For investors, the 83,800-84,000 zone is an important near-term support. The 85,000-85,800 area is the immediate resistance zone. It would be prudent to avoid chasing the rally at current levels."
He added that keeping leverage limited and using staggered entries may help manage volatility as markets respond to ETF flows, Treasury yields and upcoming U.S. inflation data.
This week’s U.S. PCE inflation report, ISM manufacturing data and nonfarm payrolls report could affect expectations for further Fed rate hikes and move the broader market.