Investors had widely expected the US President to outline steps toward de-escalation.
The price of Bitcoin suffered a sharp decline in the aftermath of US President Donald Trump’s address regarding Iran. Hours before the speech, Bitcoin and other high-risk assets had been trending upward, as markets priced in hopes for an end to the war and a resumption of oil supplies through the Strait of Hormuz. Instead, Trump’s statements triggered a risk-off move across both cryptocurrencies and equities. By Thursday afternoon (April 2, 2026), the price of Bitcoin stood at $66,423, marking a drop of over 2.57% in the last 24 hours. The leading cryptocurrency touched an intraday high of $69,230 before abruptly reversing course, with 24-hour trading volume falling by more than 12%.
The Trump address
Investors had widely expected the US President to outline steps toward de-escalation. However, Trump stated that the US would "hit" Iran "extremely hard" over the next two to three weeks, noting that military objectives are nearing completion. Trump warned of potential additional strikes on Iran's electrical infrastructure if a deal is not reached, while providing no specific timeline for the reopening of Hormuz. As a result, Brent crude prices surged over 7.8%, surpassing $109 per barrel.
The yield on the US 10-year Treasury climbed to 4.376% due to inflation concerns. Gold and silver retreated by over 2% and 4% respectively, as safe-haven demand flickered. It is noted that Iran is demanding payments in Chinese yuan or cryptocurrencies for safe passage through the Straits, while the UAE is pushing for a UN Security Council resolution.
Mass sell-off in the cryptocurrency market
The lack of positive messaging sent Bitcoin and the broader cryptocurrency market into a freefall, mirroring weakness in US stock futures, which lost over $550 billion in value. Ethereum, XRP, Solana, and Dogecoin all traded lower alongside BTC. Market sentiment turned bearish as traders re-evaluated geopolitical risks and the likelihood that high oil prices will fuel inflation.
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