The week ending April 3, 2026 saw global financial markets continue to be shrouded in uncertainty due to the Middle East conflict. Bitcoin (BTC) experienced extreme volatility, struggling between the $66,000 support level and the $68,000 resistance level, before plunging again following President Trump's harsh speech threatening military escalation against Iran.
Investors' hopes of seeing a de-escalation were dashed when Trump not only repeated his threat of destruction against Iran, but also hinted at the possibility of the United States withdrawing from NATO. The rhetoric sparked panic in risk asset markets, causing BTC prices to fluctuate around the $67,000 level with warnings of a potential drop of up to 80% if the Strait of Hormuz were completely closed.
In commodity markets, crude oil prices surged above $110 a barrel, hitting their highest level in almost a month. The rise was driven by concerns about ongoing supply disruptions in the Strait of Hormuz, although Trump claimed the passage could easily be reopened with more aggressive US military action.
The crypto sector was also jolted by technical and security news, including the Drift Protocol hack and a warning from Google about the threat of quantum computing to Ethereum (ETH) wallets. However, a massive corporate accumulation by Metaplanet, which bought over 5,000 BTC, provided some morale support to a market in a capitulation phase.
Overall, Bitcoin’s dominance remains strong at 56% with the global crypto market cap stable above $2.3 trillion. Investors are currently in a cautious phase, closely monitoring geopolitical developments and on-chain data showing long-term holders starting to sell at losses, a sign often associated with the final phase before a trend reversal.
