U.S. President Donald Trump said Wednesday he would hold off military action against Iran after receiving assurances from a "very important source" that the killing of protesters had stopped. But the U.S. military has already redeployed personnel to bases in Qatar and other Middle East locations, keeping markets on edge.
Iran is experiencing the largest wave of civil unrest since the 1979 Islamic Revolution. Trump told reporters in the Oval Office, "We've been told the killing in Iran has stopped. I learned that from a very important source on their side." When asked if a military strike was off the table, he said he would "see how things develop" but warned he would be "very unhappy" if repression continued.
According to Bloomberg, the redeployment was due to "ongoing concerns and threats from Iran to attack those sites." The moves mirror preparations taken before the U.S. airstrikes on Iran in June 2025.
Iranians Flock to Bitcoin and Gold as Rial Crashes
The Iranian rial's black market rate has plunged to 1.4 million per dollar, losing 99.95% of its value in 35 years. Since the Iran-Israel conflict in June 2025, the rial has shed another 40%. Facing a collapsing fiat currency, Iranians are turning to Bitcoin and gold as stores of value.
Vice President JD Vance chaired a national security meeting on Iran Tuesday. White House officials said Trump has been briefed on multiple military strike options, including non-military facility targets. Iran has warned the U.S. and Israel not to intervene. Markets remain wary of Trump's willingness to act, given the precedent of the U.S. raid on Venezuela and the capture of President Maduro last year.
Bitcoin Volatility Drops Below S&P 500, but Gold Still Outperforms in Short-Term Crises
During the U.S.-Iran conflict in June 2025, Bitcoin flash crashed to $100,866 within 24 hours, with nearly $1 billion in total market liquidations. When Israel struck Tehran on June 13, Bitcoin briefly fell below $104,000. However, data shows Bitcoin's 60-day realized volatility has fallen to 27%-28%, below the S&P 500's 30%, suggesting it is shedding its "high-risk speculative asset" label.
Gold has recently broken above $4,600 to a new all-time high, while Bitcoin hovers below $97,000. Bitwise investment advisors note that if geopolitical uncertainty persists, it could become the primary driver of risk aversion, even outweighing the impact of Fed rate cuts, and could suppress Bitcoin's rally toward $150,000.