Bitcoin traded mostly flat on Friday, hovering near the $67,000 mark as market participants shifted their focus from Middle Eastern hostilities to significant upheaval in U.S. domestic politics. After opening the April 3 session just below $67,000, the top cryptocurrency dipped to $66,345 before rallying to an intraday high of $67,195. It later declined to $66,700 and tested the $67,000 threshold again before settling near $66,500. By 1 p.m. EDT, bitcoin was challenging the $67,000 level for the third time. The cryptocurrency's relative stability kept its market capitalization around $1.34 trillion, while 24-hour liquidations on bitcoin remained capped below $31 million—a sharp decline from Thursday's $103 million, indicating reduced volatility.
Political Shakeup Overshadows Conflict
While the U.S. bombing of a strategic Iranian bridge heightened geopolitical stakes, discussions were dominated by the dismissal of Pam Bondi by the president and the firing of the U.S. Army chief of staff, Randy George, by Defense Secretary Pete Hegseth. With U.S. markets closed for the Easter holidays, the immediate impact of these leadership changes—particularly the removal of a top military officer during active operations—remains uncertain. Social media users suggested the Army chief was ousted for resisting specific Trump administration policies. The appointment of Christopher LaNeve, seen by some as a loyalist, as acting chief of staff has fueled concerns that the conflict may escalate into a dangerous new phase involving U.S. ground forces in Iran. Earlier in the week, Trump's aggressive 'Stone Age' rhetoric triggered a $440 million crypto wipeout, but Friday's session was notably calmer.
Energy Prices Surge Amid Supply Fears
These developments triggered a surge in energy prices. West Texas Intermediate (WTI) crude jumped approximately 11.4% to $111.54 per barrel, while Brent crude rose 7.8% to $109.03. In a rare market inversion, WTI flipped Brent, driven by a spike in demand from Asian and European buyers seeking alternatives to disrupted Persian Gulf supplies. Prediction market traders are increasingly bullish on energy, with many wagering that WTI could reach $120 or $130 per barrel this month if stability is not restored. Since early March, surging oil prices have pressured global equities and, more recently, the crypto market. Although bitcoin was only 0.3% lower by Friday afternoon, the broader macro backdrop remains fragile.
Analysts Warn of Range-Bound Trading Risk
Analysts warn that a further escalation in fighting increases the probability of bitcoin remaining range-bound between $66,000 and $70,000, or potentially descending further. The low volatility on Friday suggests traders are adopting a wait-and-see approach amid the confluence of political uncertainty and energy cost inflation. From a technical perspective, the $66,000 level provides support, while $67,200 acts as near-term resistance. A break below $66,000 could accelerate selling toward $65,000, while a move above $67,200 may open the door to retest $70,000. However, analysts caution that macro events currently dominate price action, rendering technical signals less reliable. Traders are closely watching upcoming economic data and any further changes in U.S. leadership that could alter the geopolitical landscape.