Bitcoin dropped 2.2% to $66,609 on Wednesday after former President Donald Trump's primetime address, in which he warned of hitting Iran 'extremely hard' over the next two to three weeks. This reversed earlier gains and sent ripples through the cryptocurrency market, with all major tokens in the top 10 experiencing declines. Ether fell 2.2% to $2,056, BNB dropped 3.9% to $591, XRP lost 2.5% to $1.31, and Solana's SOL led the losses at 5.2%, marking a 13% weekly decline. The selloff followed a brief rally earlier in the week driven by optimism over Trump's earlier remarks suggesting the conflict could end within weeks. Asian stocks had surged 4%, and S&P 500 futures had risen, reflecting a more optimistic outlook. However, Trump's speech, which offered no new policy details or pathways to de-escalation, shifted sentiment sharply. The Strait of Hormuz, a critical oil shipping lane, remains closed, and Trump's comments did not provide a timeline for its reopening. Brent crude oil prices rose 5% to over $106 a barrel, while Asian shares fell 2.1% and U.S. and European equity futures dropped more than 1.2%. The dollar strengthened, and Treasuries fell as inflation concerns mounted. In the crypto market, Bitcoin has been range-bound between $60,000 and $73,000 for five weeks, reacting to each escalation and de-escalation headline. The Fear and Greed Index remains at 8, indicating extreme fear, a level it has maintained for the past month. Despite historical optimism for April, which has seen Bitcoin rise 10 out of 15 years with an average gain of 20.9%, the ongoing conflict continues to overshadow potential seasonal gains. Bitcoin recently bounced off its two-month support level near $60,000 but faces resistance at the 50-day moving average. The pattern of market reactions to geopolitical events shows no sign of breaking until the conflict in the Middle East resolves.
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