Bitcoin Slides Back Toward April Lows

Bitcoin slipped about 2.0% to $66,512 on Thursday after U.S. Presiden Trump struck a hawkish tone in a national address on the Iran conflict, vowing to hit the country “extremely hard” in the coming weeks. Speaking from the White House, Trump said the U.S. military is “very close” to completing “Operation Epic Fury,” claiming severe damage to Iran’s nuclear, naval, and weapons infrastructure, including drones and missile capabilities. Despite the tough remarks, Trump noted that negotiations are ongoing. The U.S. is demanding Iran dismantle its nuclear program, secure key shipping routes, and halt support for proxy groups, while Iran is seeking a permanent ceasefire, compensation, and a full withdrawal of U.S. forces from the region. The escalation in Trump’s Iran rhetoric weighed on short-term risk sentiment, pressuring assets like Bitcoin. Still, hopes for diplomacy helped limit deeper losses, leaving prices vulnerable to further swings as geopolitical developments continue to unfold.

Bitcoin traded around $68,000 in late March, holding most of its recent losses at a two-week low, as fresh threats and attacks involving the US, Israel, and Iran weighed on risk sentiment. President Trump threatened to strike Iran’s power plants unless the Strait of Hormuz, closed for weeks, was reopened, sending oil and commodity prices higher, while Iran warned it would retaliate against US and Israeli targets if its energy infrastructure were attacked. The cryptocurrency has now sold off more than 20% since the Middle East war erupted, extending the downturn that began in late October after Bitcoin retreated from its record high. Analysts say additional pressures include its exposure to a broader selloff in stocks and other risky assets, along with higher energy costs that make mining more expensive. Support from anticipated crypto legislation has also weakened as attention shifts to the geopolitical crisis.

Bitcoin rose nearly 2% toward $72,000 in mid-February, extending its rally to a fifth consecutive session as the cryptocurrency remained largely insulated from escalating tensions in the Middle East. The US-Israeli war with Iran remained unabated, as oil prices surged after Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz shut and ramp up attacks on regional oil and transport infrastructure. The incidents have pushed energy prices higher, reviving concerns about resurgent global inflation and prompting major central banks, including the Federal Reserve, to signal a hawkish stance, potentially putting pressure on risk-sensitive assets such as cryptocurrencies. Investors are now awaiting US economic data for further clues on the Fed’s policy path. Despite these uncertainties, capital has recently begun flowing back into Bitcoin after months of selling pressure drove prices to roughly half of the record high above $126,000 reached in October.