Total crypto market capitalization shed around $80 billion over a few hours late on Monday night as Middle East tensions escalated.

It fell marginally to around $3.44 trillion as Bitcoin dipped by over $2,000 in a decline to around $106,500 before it immediately started to recover and reclaim $107,000 at the time of writing.

The dip was caused by US President Donald Trump calling for the evacuation of Tehran as the exchange of missiles between Israel and Iran continued for a fourth day.

Trump Leaves G7

Donald Trump departed the annual G7 meeting in Canada early, telling reporters, “I have to be back early for obvious reasons.”

The POTUS also took to his Social Media platform to say that Iran should have signed his “deal” before adding that the country cannot have a nuclear weapon and “everyone should immediately evacuate Tehran.”

TRUMP: “Everyone should immediately evacuate Tehran.” pic.twitter.com/vGygTxuFsg

Meanwhile, other nations, including China and Russia, urged their citizens to evacuate Tel Aviv as the military action intensified. The message appeared orchestrated to increase pressure on Iran to come to the negotiating table amid a veiled threat of military intervention.

“American forces are maintaining their defensive posture, and that has not changed. We will defend American interests,” White House spokesman Alex Pfeiffer wrote on X while disputing fake news that air strikes were imminent.

Odds on the United States taking military action against Iran before the end of this month surged to 67% on blockchain prediction platform Polymarket.

BREAKING: The U.S. is projected to take imminent military action against Iran.

67% chance. pic.twitter.com/Cqcy3OnBki

Markets Disagree With WWIII

A crypto market reaction of this minor magnitude is just another day on the field, which begs the question: Are digital assets becoming immune to geopolitical turmoil? In fact, crypto markets tanked twice as hard when the Trump and Elon Musk bromance collapsed on June 6.

Meanwhile, other risk-on assets such as tech stocks are also weathering the storm at the moment.

“If there were even a 50% chance of WW3 right now, the SP 500 wouldn’t be 2% away from a new all-time high,” observed the Kobeissi Letter.

At the time of writing, Bitcoin was still trading in the middle of its range-bound channel, where it has been since the beginning of May, and Ethereum had bounced off support at $2,500, so crypto markets are holding up pretty well, all things considered.