Crypto and global equity markets turned lower on Wednesday after President Donald Trump’s primetime address dampened hopes of a near-term de-escalation in the Iran conflict. Oil prices surged in response, rising more than 5% to above $106 per barrel.
Bitcoin fell 2.2% to $66,609, reversing gains from the previous session as Trump warned the U.S. would strike Iran “extremely hard” over the next two to three weeks. The remarks marked a sharp shift from earlier comments that had fueled optimism about a possible resolution.
Selling pressure extended across major cryptocurrencies. Ether dropped 2.2% to $2,056, BNB declined 3.9% to $591, XRP lost 2.5% to $1.31, while Solana led losses with a 5.2% fall, pushing its weekly decline to 13%.
The downturn followed a strong rally on Tuesday, when markets surged on expectations that the conflict could wind down soon. Asian equities had climbed as much as 4%, and S&P 500 futures moved higher, reflecting the most positive sentiment since the conflict began five weeks ago.
That optimism quickly faded after Trump’s nearly 20-minute speech, which offered no clear policy changes, operational details, or indications of a ceasefire. His comments on the Strait of Hormuz—suggesting it would reopen “naturally” once tensions ease—did little to reassure investors, as no timeline was provided.
Markets reacted sharply. Brent crude jumped above $106, Asian stocks dropped 2.1%, and U.S. and European equity futures fell more than 1.2%. The dollar strengthened, while Treasury prices declined amid renewed inflation concerns.
In crypto, the broader pattern remains unchanged. Bitcoin has spent the past five weeks trading within a wide range of roughly $60,000 to $73,000, reacting to geopolitical headlines rather than establishing a sustained trend.
Investor sentiment continues to reflect caution. The Fear and Greed Index remains deeply in “extreme fear” territory, hovering between 8 and 14 over the past month.
There are some supportive factors. April has historically been a strong month for bitcoin, delivering gains in 10 of the past 15 years with an average return of over 20%. The asset also recently bounced from key support near $60,000 and is now attempting to reclaim its 50-day moving average.
However, seasonal trends may take a back seat to geopolitical risks. The recurring pattern of rallying on optimism and reversing on negative developments suggests markets will remain volatile until there is clear progress toward resolving the conflict
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