Trump Plans Cuba Takeover, Iran War Heat Drives Bitcoin Crash

Bitcoin fell sharply on February 27 as geopolitical tensions intensified, pulling the price back to around $65,200 after several days of attempts to recover toward $70,000. The drop came as US President Donald Trump suggested the possibility of a “friendly takeover” of Cuba, while Washington simultaneously increased its military posture in Israel.

The combined headlines injected fresh uncertainty into global markets. Crypto, which had been stabilizing, reacted quickly.

Trump on Cuba: “Maybe We Will Do a Friendly Takeover”

Speaking earlier today, Trump said the Cuban government is “in big trouble” and “talking with us,” adding that the US could pursue a “friendly takeover.” He framed Cuba as financially desperate and open to negotiation.

The comment follows weeks of mounting pressure. Since returning to office in January 2025, Trump reinstated and expanded maximum pressure policies against Havana. 

In late January 2026, he signed an executive order declaring a national emergency related to Cuba and threatening tariffs on any country supplying oil to the island.

That move effectively created an oil blockade. Cuba relies heavily on Venezuelan and Mexican fuel. When shipments were halted under US pressure, the island faced rolling blackouts, airport fuel shortages, and widespread economic strain.

How the Cuba Crisis Escalated

Tensions intensified further this week after a deadly maritime incident. Cuban forces intercepted a US-registered speedboat near their territorial waters. Four people were killed in the exchange. 

Havana described the group as armed infiltrators. Washington denied involvement but launched investigations.

Meanwhile, Trump’s administration briefly allowed limited humanitarian oil flows through private channels. 

However, the broader economic pressure remains in place.

Against this backdrop, the phrase “friendly takeover” carries weight. It likely implies a negotiated political transition under US leverage, not a military invasion. 

Still, the language is sensitive. Cuba has built its identity around resisting US influence for over six decades.

US Military Build-Up in Israel

At the same time, the United States has increased its military presence in Israel amid rising tensions with Iran. 

Advanced fighter jets and additional assets have been positioned in the region. The State Department also authorized the departure of non-essential diplomatic staff.

Although officials describe the posture as deterrence, markets see rising geopolitical risk. The Middle East and the Caribbean now sit under simultaneous US pressure campaigns.

Bitcoin Reacts to Global Risk

Bitcoin had been attempting to reclaim $70,000 in recent sessions. Instead, it reversed sharply, falling more than 3% in 24 hours. The move suggests traders are reducing risk exposure.

Crypto often reacts to macro uncertainty in two phases. Initially, liquidity tightens and prices drop. Later, if instability persists, some investors rotate into Bitcoin as a hedge.

For now, markets appear to be in the first phase.

With geopolitical tensions expanding on multiple fronts, volatility may remain elevated. Bitcoin’s next move will likely depend on whether diplomatic channels calm the situation — or whether escalation continues.