Bitcoin Sinks as Bessent Dismisses Bailout

Bitcoin climbed above $72,000 in early April, reaching its highest level in three weeks, as risk appetite improved following news of a temporary ceasefire between the US and Iran. President Donald Trump agreed to a two-week halt on strikes against Iran, while Iran committed to temporarily reopening the Strait of Hormuz. The announcement came just under two hours before Trump’s deadline for Iran to act. The positive sentiment in global markets coincided with Bitcoin showing resilience in recent weeks, supported by easing institutional selling pressure. US-listed spot Bitcoin ETFs have also seen a rebound in investor demand, with recent inflows reversing previous outflows. After several months of declining interest, March recorded a stabilization in net inflows, reflecting renewed confidence in both the funds and the broader cryptocurrency market.

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.