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Bitcoin price fell nearly 4% after President Trump signaled potential escalation against Iran, sparking a broad risk-off move across global markets and dragging the BTC price temporarily below $66,000.
Bitcoin price fell last night after President Donald Trump signaled a potential escalation in military action against Iran, triggering a broad pullback across global markets and raising questions about whether bitcoin price could test lower support levels.
The price of Bitcoin dropped nearly 4% within hours after Trump’s April 1 address, sliding to below $66,000 early April 2. The decline came as investors shifted away from risk assets following remarks that pointed to harder strikes in the coming weeks, with no timeline for de-escalation.
Equity markets also moved lower. The S&P 500 traded in negative territory, while Asia-Pacific equities reversed earlier gains. At the same time, oil prices surged, with Brent crude rising above $106 per barrel as traders priced in the possibility of prolonged disruption in the Strait of Hormuz, a key global shipping route.
The move highlights how closely Bitcoin price is tracking traditional markets during periods of geopolitical stress.
Data shows the 30-day correlation between Bitcoin price and the S&P 500 has climbed to around 0.75, indicating that institutional investors are treating the digital asset more like a high-growth technology proxy than a hedge.
Bitcoin had shown some resilience in recent weeks, ending March with a modest gain and snapping a multi-month losing streak. However, it remains down roughly 45% from its prior peak above $126,000, and demand indicators suggest continued pressure.
JUST IN: Bitcoin has closed its first green month after 5 months of red 👀 pic.twitter.com/jVMxXp9w2L
From a technical perspective, Bitcoin is now approaching a key support range between $64,000 and $65,000. The level has held through several recent tests, but a break below it could open the door to a move toward $60,000, near the February low, according to Bitcoin Magazine Pro data.
On the upside, resistance sits around $68,000 and $70,000. Analysts say those levels need to be reclaimed to shift sentiment and support a recovery narrative.
Until then, price action remains constrained by a pattern of lower highs that has developed since March.
Long-term holder data suggests the market may be moving through a late-stage bear cycle. Investors holding Bitcoin for six months or more now control about 80% of supply, approaching levels that have marked past market bottoms.
