Donald Trump’s push for an additional $200 billion in Iran war funding is intensifying macro pressure on crypto markets as investors reassess risk, debt and currency outlooks.
The proposed spending would come on top of an existing roughly $900 billion defence budget, pushing total US military outlays toward the $1 trillion mark.
“It takes money to kill bad guys,”
US Defense Secretary Pete Hegseth said, confirming the Pentagon will seek additional funding from Congress.
The scale of the proposed spending is raising concerns about widening deficits, inflation risks and long-term pressure on the US dollar.
Market participants say these dynamics are driving a risk-off shift, with investors pulling back from volatile assets such as cryptocurrencies.
At the same time, some analysts argue that rising fiscal strain could strengthen Bitcoin’s appeal as a scarce, non-sovereign asset over the longer term.
Historically, geopolitical shocks have triggered short-term sell-offs in crypto before recoveries as macro narratives evolve and safe-haven demand builds.
At the time of reporting, Bitcoin price was $68,203.09.