President Donald Trump's shifting rhetoric on the U.S.-Iran conflict rattled markets for a second straight day. On April 2, Trump threatened to send Iran back to the "Stone Age," wiping out gains from the prior day's conciliatory tone and pushing bitcoin below the $66,000 threshold. The leading cryptocurrency briefly dipped to $65,696 before staging a short-lived rebound past $67,000. By 2:20 p.m. EST, it traded near $66,800, with momentum fading.
Bitcoin Market Cap Shrinks by $40 Billion
Bitcoin's market capitalization dropped from $1.37 trillion to $1.33 trillion, dragging the broader crypto economy to $2.38 trillion. Leveraged positions saw about $48 million liquidated over 12 hours, and $103 million over 24 hours. Total crypto liquidations exceeded $440 million, with long bets accounting for $274 million. Trump's aggressive stance reversed the optimism sparked by his more diplomatic remarks the previous day, which had briefly lifted bitcoin above $69,000.
Geopolitical Quagmire: Iran Charges Transit Fees in Yuan or Crypto
Reports indicate Iran is now charging transit fees for the Strait of Hormuz in Chinese yuan or cryptocurrency—a move analysts interpret as a direct assault on the U.S. dollar's global dominance. If this practice hardens into a new norm, it would mark a strategic defeat for Washington, undermining decades of financial hegemony. NATO allies have refused to join the conflict, leaving the U.S. increasingly isolated. Observers argue that this combination of economic pushback and diplomatic resistance explains the president's erratic messaging.
$65,500: The Critical Support Level
Some analysts view bitcoin as a "residual indicator of risk absorption." Despite the price drop, the technical landscape remains gridlocked. Liquidity is heavily stacked between $69,000 and $70,100, but a lack of demand-side conviction has capped rallies at $68,000. The $65,500 level serves as the key structural test. Should energy shocks or military escalation intensify, a breach of this support could trigger a massive cascade of forced liquidations. On April 1, bitcoin twice broke above $69,000 on U.S.-Iran de-escalation hopes, highlighting the market's extreme sensitivity to geopolitical headlines.