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 price resilience
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.
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.
Even so, previous cycles indicate that extended periods of sideways trading often follow before a sustained recovery begins.
On top of this, Bitcoin treasury firms and public companies are offloading BTC as prices fall, adding fresh pressure to the market as long-term holders turn into sellers. Companies including Riot Platforms, MARA Holdings, and Genius Group have trimmed holdings this week to raise liquidity and service balance sheets.
For now, Bitcoin’s reaction to geopolitical developments underscores its current role within the broader macro environment.
As long as uncertainty around the Iran conflict persists, market direction may remain tied to shifts in risk sentiment rather than a return to the asset’s safe-haven narrative.