Crypto markets and global equities retreated on Wednesday after President Donald Trump’s national address undercut a brief risk-on rally fueled by hopes of a near-term end to the Iran conflict. Oil prices surged in response, climbing more than 5% to trade above $106 per barrel.
Bitcoin dropped 2.2% to $66,609, erasing gains from the previous session as Trump signaled a more aggressive stance, warning that the U.S. would strike Iran “extremely hard” over the next two to three weeks. The remarks contrasted sharply with earlier expectations of de-escalation that had buoyed markets.
Losses were broad-based across major cryptocurrencies. Ether declined 2.2% to $2,056, BNB fell 3.9% to $591, XRP slipped 2.5% to $1.31, and Solana led the downturn with a 5.2% drop, bringing its weekly losses to 13%.
The reversal followed a strong rally on Tuesday, when optimism surged after Trump suggested the war could end within weeks and indicated that a deal with Tehran might not be necessary. Asian equities had jumped as much as 4%, while S&P 500 futures also moved higher, marking the most positive sentiment since the conflict began five weeks ago.
That momentum quickly faded after Trump’s nearly 20-minute address, which offered no concrete policy shifts, operational details, or signals of a potential ceasefire. His comments on the Strait of Hormuz—saying it would reopen “naturally” once hostilities ease—provided little clarity or timeline.
Markets reacted swiftly. Brent crude spiked above $106, Asian stocks fell 2.1%, and U.S. and European equity futures dropped more than 1.2%. The dollar strengthened, while Treasury prices declined amid renewed inflation concerns.
For crypto markets, the pattern has become increasingly familiar. Bitcoin has spent the past five weeks trading in a volatile range between roughly $60,000 and $73,000, reacting sharply to each geopolitical headline—rising on signs of de-escalation and falling on renewed tensions—without establishing a clear directional trend.
Investor sentiment remains deeply negative. The Fear and Greed Index is hovering around 8, firmly in “extreme fear” territory, where it has lingered between 8 and 14 for much of the past month.
There are, however, some reasons for cautious optimism. April has historically been one of bitcoin’s strongest months, delivering gains in 10 of the past 15 years with an average return of 20.9%. The asset also recently rebounded from key technical support near $60,000 and is attempting to reclaim its 50-day moving average.
Still, seasonal trends may offer limited support in the face of geopolitical uncertainty. The market’s recent behavior—rallying on optimism only to reverse on new developments—suggests that volatility will persist until there is meaningful progress toward resolving the conflict.
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