The world woke up to a shock on July 24, what started as a skirmish over a centuries-old temple on the Thai-Cambodia border has escalated into one of the deadliest Southeast Asian clashes in over a decade. But this isn’t just a regional conflict. The war has sent shockwaves through global markets, and one unexpected arena is feeling the heat the most: cryptocurrency. With the U.S. President Donald Trump throwing his weight into the situation, warning both nations of brutal tariffs, investor sentiment has taken a nosedive. What’s happening, and why is crypto bleeding? Let’s find out.
What’s actually happening?
Fighting erupted on July 24 between Thai and Cambodian forces near the disputed Ta Moan Thom temple. The violence has since expanded, drawing in heavy artillery, rocket systems, and even airstrikes. Around 35 people are dead at the very least, and over 270,000 left their home and fled.
A territorial dispute turned military nightmare has plunged Thailand and Cambodia into chaos, and the digital markets are paying the price.
How the conflict reached this point
The Thailand-Cambodia border has long been a flashpoint, with national pride and ancient landmarks complicating diplomacy. But this time, tensions reached a breaking point. On July 24, both sides blamed the other for starting the violence near the ancient Ta Moan Thom temple. Cambodia unleashed Russian-made BM-21 rockets while Thailand responded with F-16 airstrikes. Civilian casualties and massive evacuations followed within hours.
What’s alarming is how deep the mistrust runs. Thailand accused Cambodia of a “premeditated attack,” while Cambodia countered with claims of self-defense after an “unprovoked incursion.” Media in both countries have amplified nationalist sentiment, turning the battlefield into a propaganda war as well.
Trump steps in and Crypto shivers
From a golf course in Scotland, former U.S. President Donald Trump issued an ultimatum to both Thai and Cambodian leaders: ceasefire or face a 36% U.S. tariff effective August 1. Trump also made it clear, no negotiations, no trade deals, unless the violence ends.
The warning was explicit and global markets listened. Trump referenced a similar diplomatic approach he previously applied to India and Pakistan, using economic pressure as a tool to push both sides toward de-escalation. Meanwhile, the U.S. Secretary of State Marco Rubio confirmed American involvement in organizing Malaysia-based peace talks, with China also stepping in. As tensions escalate, investors are bracing for trade disruption across Asia, and the cryptocurrency market is feeling the tremors.
Crypto market fallout causing coins to bleed?
Here’s how major coins reacted following Trump’s tariff threats and the ongoing regional instability:
| Coin/Token | Estimated drop | Key drivers |
| BTC, ETH, TON | ~0.6–1.8% | Regional instability and rate expectations |
| XRP, ADA, SOL, DOGE | ~20–30% | Macro tariff shock, high volatility exposure |
| Memecoins / Trump tokens | Sharp speculative decline | Investor sentiment reversed abruptly |
Impact on the crypto market:
In the short term, investors are acting cautiously, even nervously. Right now, the market is pricing in an 80% chance of a Fed rate cut this September, which should be good news for crypto. Normally, lower interest rates mean more risk taking, and assets like Bitcoin and Ethereum tend to rally.
But that’s not happening this time. BTC and ETH are still sliding, showing that traders aren’t chasing the rate-cut optimism. Instead, they’re sitting on their hands, waiting for actual peace or concrete signs of economic stability. This drop isn’t about technicals or long-term fundamentals, it’s pure fear.
And here’s where it gets interesting… Is History about to repeat itself like in 2020? Let’s rewind to 2020. Back then, Trump stirred up global markets when he publicly threatened to fire Fed Chair Jerome Powell. It was chaos, and yet, Bitcoin surged over 40% that month. Traders rushed into BTC, viewing it as a hedge against political pressure on the central bank.
Now in 2025, we’re hearing the same kind of aggressive, high stakes rhetoric from Trump, this time aimed at foreign governments, not the Fed. Still, the pattern looks familiar: global tension, strongman tactics, and uncertainty.
The question on everyone’s mind is could crypto boom again if this Trump pressure escalates further?
So far, markets aren’t betting on it, but they might, fast. One strong move (like a surprise ceasefire, or even an escalation) could flip sentiment overnight. We’ve seen it happen before.
Recommendation: Based on our analysis, we recommend holding your coins rather than selling them out of fear. It’s important to remain patient and allow the market to stabilize. We strongly advise conducting thorough research before making any trading decisions.
Wrapping up
The Thailand-Cambodia war has exposed how fragile regional peace can be, and how global markets, especially crypto, are tightly wired to geopolitical events.
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