Crypto and equity markets retreated Wednesday after President Donald Trump’s national address undermined expectations of a near-term de-escalation in the Iran conflict, triggering a sharp move higher in oil prices.
Bitcoin slipped 2.2% to $66,609, giving back the previous session’s gains as Trump warned the U.S. would strike Iran “extremely hard” in the coming weeks. The tone marked a reversal from earlier comments that had fueled optimism about a potential resolution.
Losses extended across major cryptocurrencies. Ether fell 2.2% to $2,056, BNB declined 3.9% to $591, XRP dropped 2.5% to $1.31, while Solana led the selloff with a 5.2% decline, bringing its weekly losses to 13%.
The pullback followed a strong rally on Tuesday, when risk assets surged on hopes the conflict could soon wind down. Asian stocks had climbed as much as 4%, and S&P 500 futures advanced, reflecting the most positive sentiment since tensions began five weeks ago.
That optimism faded quickly after Trump’s nearly 20-minute speech failed to outline any policy shift, operational clarity, or pathway to a ceasefire. His remarks on the Strait of Hormuz—suggesting it would reopen “naturally” once hostilities ease—offered little reassurance without a clear timeline.
Markets reacted swiftly. Brent crude jumped above $106 per barrel, Asian equities fell 2.1%, and U.S. and European equity futures dropped more than 1.2%. The dollar strengthened, while Treasuries declined amid renewed inflation concerns.
Bitcoin’s broader trend remains unchanged. Over the past five weeks, it has traded within a wide $60,000 to $73,000 range, rising on de-escalation hopes and falling on renewed geopolitical risks, without establishing a sustained direction.
Sentiment continues to reflect caution. The Fear and Greed Index remains deep in “extreme fear” territory, hovering between 8 and 14 over the past month.
There are some supportive elements. April has historically been one of bitcoin’s strongest months, delivering gains in 10 of the past 15 years with an average return of around 20%. The asset also recently rebounded from key support near $60,000 and is attempting to reclaim its 50-day moving average.
Still, seasonal trends may be overshadowed by geopolitical developments. The recurring pattern of rallying on optimism and reversing on escalation suggests markets will remain volatile until there is meaningful progress toward ending the conflict.
