Bitcoin traded mostly flat on April 3, hovering near $67,000 as market attention pivoted from Middle Eastern hostilities toward significant upheaval in U.S. domestic politics. According to CryptoComLearn, the cryptocurrency’s relative stability kept its market cap steady at $1.34 trillion, with 24-hour liquidations on bitcoin remaining capped below $31 million—a sharp decline from Thursday’s $103 million.
Political Turbulence Overshadows Geopolitical Conflict
After opening the April 3 session just below $67,000, bitcoin dipped to $66,345 before rallying to an intraday high of $67,195. It then declined to $66,700 and tested $67,000 again before settling near $66,500. 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.
Energy Markets Surge, Adding Macro Pressure
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, analysts warn that a further escalation in fighting increases the probability of the asset remaining range-bound between $66,000 and $70,000, or potentially descending further.
Analyst Outlook: Range-Bound Trading Could Persist
Analysts noted that the current environment is unfavorable for risk assets. Rising gasoline prices erode household purchasing power, and coupled with political uncertainty, investors tend to reduce exposure to volatile assets. If U.S. leadership changes lead to more aggressive military action, bitcoin could test the $66,000 support level or even lower. However, an unexpected de-escalation in the Middle East or a government stabilization measure could push bitcoin back above $70,000.
As of press time, bitcoin was trading around $66,800 with a 24-hour volume of approximately $42 billion. Investors are closely watching U.S. political developments and energy market trends.