Global Tensions Spark Crypto Selloff, Sending BTC Crashing as Oil Prices Soar Amid Escalating Geopolitical Crisis

Table of Contents Bitcoin experienced a significant downturn Thursday following President Donald Trump’s national address concerning the escalating Iran conflict. Traders had anticipated signs of potential de-escalation, but the president’s remarks indicated the contrary. During his address, Trump informed the American public that the United States would “hit them extremely hard over the next two to three weeks,” in reference to Iran. While he noted that military goals were nearing completion, he provided no specific timeline for a potential ceasefire. NOW – Trump on Iran: "We're going to hit them extremely hard over the next 2-3 weeks. We're going to bring them back to the stone ages, where they belong!" pic.twitter.com/knSmNB9OQk — Disclose.tv (@disclosetv) April 2, 2026 Crude oil markets reacted swiftly to the news. Oil prices surged 5%, climbing above $104 per barrel. With the Strait of Hormuz continuing to face blockades and Trump offering no indication of imminent reopening, energy markets remain volatile. Bitcoin had been changing hands near $69,230 prior to the presidential address. By early Thursday morning, the leading cryptocurrency had tumbled to $66,393, representing approximately a 2.9% decline in less than a full day. The wider cryptocurrency sector mirrored this movement. Ethereum, XRP, Solana, and Dogecoin all registered substantial declines. Bitcoin’s trading volume contracted by more than 8% during this timeframe. According to CoinGlass analytics, aggregate BTC futures open interest contracted 2.5% to $46.49 billion within just four hours post-speech. CME open interest decreased 2.70% while Binance witnessed a 2.96% drop. Such movements generally indicate traders liquidating or closing long positions. The Coinbase Premium indicator, which tracks institutional and retail demand from United States-based purchasers, shifted into negative territory. This development suggests American retail participants are holding back from purchasing during the current price decline. Market commentators Lyn Alden and Rory Johnston observed that markets “didn’t really learn anything more from Trump’s Iran War address, but those things he reaffirmed are likely going to continue driving crude prices higher.” The US Dollar Index strengthened by 0.33% to reach 100, while the 10-year Treasury yield advanced to 4.376%. Precious metals faced pressure as gold retreated more than 2% and silver plummeted over 4%. Notwithstanding the present market downturn, Bitcoin exchange-traded funds registered their first monthly net inflow since October. Spot Bitcoin ETFs accumulated $1.2 billion during March following four straight months of capital outflows. Following the October 2025 peak, Bitcoin $BTC has already seen a 52% correction. On February 27, 2026, we saw the 3-day SMA cross once again. As of today, we are exactly 30 days into this signal. If history "rhymes," we are likely entering the Final Accumulation Window of this… https://t.co/NB4vtVMaFx pic.twitter.com/gMn1MxjzKK — Ali Charts (@alicharts) April 1, 2026 Bitcoin had nonetheless delivered superior performance compared to most risk-sensitive assets throughout March, recording modest appreciation while equities and precious metals declined. Nevertheless, BTC remains approximately 24% lower in 2026 and has predominantly traded within the $60,000 vicinity for the majority of the year. Iran has publicly stated its requirement for payments in Chinese yuan or cryptocurrency for allowing passage through the Strait of Hormuz. Direct diplomatic engagement between the United States and Iran has not occurred since hostilities commenced more than a month ago. At the time of reporting, Bitcoin was trading at $66,393.