Crypto markets took a hit today, with Bitcoin falling as much as 3% during the session, after President Trump signaled an escalation of military action against Iran, shattering the fragile optimism that had briefly lifted the market earlier this week.
Trump's remarks reversed a short-lived rally built on hopes of ending the conflict with Iran and reopening the Strait of Hormuz. Instead, investors were confronted with a more hawkish tone. As a result, Ethereum fell by 4%, Solana lost nearly 6% of its value, while Brent crude jumped more than 5% to surpass $106 a barrel, a stark reminder that oil shocks are now driving the crypto market.
Caroline Moron, co-founder of Orbit Markets, stated: “Equity and commodity markets continue to fluctuate based on Trump’s latest comments on geopolitical developments. Bitcoin largely follows the direction of stocks, although in the last few weeks it has shown low sensitivity to both good and bad news.”
Bitcoin had remained relatively stable, ending March with a 2% gain and breaking a five-month losing streak, while gold fell by more than 11% during the same period amid inflation concerns related to energy supplies.
Is Trump manipulating cryptocurrency through war decisions?
Today's sell-off is testing whether the market's resilience has a true bottom, or whether geopolitical pressures will ultimately break it. The relationship between Iran and oil has already shaken Bitcoin's stability, and this pattern appears to be rapidly repeating itself.
Bitcoin is trading near $66,500 at the time of writing, having tested this level for the day as selling pressure intensified during the London morning session. The overall trend remains bearish, with Bitcoin currently about 45% below its October peak of $126,000, and demand indicators yet to recover.
According to CryptoQuant data cited in the recent market analysis, the apparent demand for Bitcoin — the gap between demand and new supply from mining — was negative by about 63,000 Bitcoins as of late March, which is no small number.
The Senate Banking Committee's decision on the Clarity Act, expected in mid-April, remains the most significant regulatory catalyst on the horizon. If the bill progresses well, it could provide a baseline for market sentiment, but for now, the macro landscape is driving prices, and cryptocurrencies are reacting to Trump's pronouncements.
