NEW YORK, April 2, 2026, 14:09 EDT
Bitcoin slipped to nearly $67,000 on Thursday, retreating after President Donald Trump indicated the conflict with Iran would drag on, a move that hit risk assets and sent both oil and the dollar climbing. The cryptocurrency was last seen trading near $66,700 in New York’s afternoon hours, off roughly 2% for the day.
This shift comes just as U.S. spot bitcoin ETFs, which hold the cryptocurrency itself, notched inflows of roughly $1.32 billion in March—their first net gains since October. But on Thursday, bitcoin gave back ground, once more tracking risk appetite instead of behaving like a safe-haven asset.
Just a day ago, global equities jumped and oil slipped, driven by optimism that tensions could ease. But sentiment soured after Trump’s televised remarks late Wednesday. He signaled military objectives were nearly met but also flagged an extra two to three weeks of airstrikes, offering little sign of how or when the conflict might de-escalate.
Russel Chesler, VanEck Australia’s head of investments and capital markets, said the speech failed to steady nerves. “The key question in all investors’ minds is ‘when is this going to be over?’” he told Investing.com. “That is what is creating the volatility.” Investing.com
“A bit of optimism” had crept in lately about a possible end to the war, according to Marc Chandler, chief market strategist at Bannockburn Global Forex. But Trump’s address, he said, “sort of undermined that hope.” For those trading bitcoin, oil, the dollar, and rate expectations are front and center again. Reuters
Bitcoin wasn’t the only one sliding. Ether dropped 3.65%. XRP lost ground too, along with other major tokens. Even so, bitcoin is still down roughly 47% from its October 2025 high—a reminder that the market’s recovery has a long way to go.
Institutional money hasn’t vanished from the market, but there’s little sign of a strong, sustained bid either. U.S. spot bitcoin ETFs saw $173.7 million in net outflows on April 1, according to Farside Investors, reversing the modest inflows logged on March 30 and March 31. Even so, Saxo noted ETF activity beneath the surface held relatively steady.
Despite the pullback, the sector notched a regulatory win elsewhere. According to Reuters, Coinbase secured conditional approval for a national trust company charter—potentially widening its custody and institutional services. “The ability to have a federal framework for our custody business is important,” vice president Greg Tusar told Bloomberg. Reuters
Now, the risk runs in both directions. If the Strait of Hormuz reopens, oil prices soften, or Friday’s U.S. payrolls come in weak, yields and the dollar could retreat. But a fresh energy jolt or stronger-than-expected data would leave bitcoin just as vulnerable to the kind of macro squeeze it faced on Thursday.
