Bitcoin Falls to $66K as Trump Signals Further Escalation in Iran

Crypto markets are tanking on Thursday morning following the latest speech from the US President threatening more violence in the Middle East.

Bitcoin prices fell below $67,000 on Thursday morning, dropping to $66,770 following Donald Trump’s latest update on the war with Iran.

“We are on track to complete all of America’s military objectives shortly, very shortly,” the President said at the White House on Wednesday. “We’re going to hit them extremely hard over the next two to three weeks,” he added.

The POTUS said that the US imports almost no oil through the Hormuz Strait and will not be taking any in the future.

“Between threatening Iran’s power plants, saying the Iran War would last 2-3 more weeks, and calling out NATO, there was nothing new,” observed the Kobeissi Letter.

“Yet, the market is now trading like the Iran war is ramping up for another month-long escalation. Why? Because he didn’t explicitly de-escalate.”

Selling Pressure Remains High

While crypto and stock futures tanked, oil prices surged back over $100 per barrel again, further pressuring the economies of nations that rely on the Middle East for their fuel supplies.

Zooming out shows that Bitcoin is still in the middle of its two-month range-bound channel, and there hasn’t been any major panic selling since early February.

https://twitter.com/BullTheoryio/status/2039520714357903400?ref_src=twsrc%5Etfw” target=”_blank

However, CryptoQuant observed that Bitcoin whales have flipped from buyers to sellers. Holders of wallets containing 1,000 to 10,000 BTC are now distributing, with 1-year holdings falling 188,000 BTC after more than 200,000 BTC of accumulation in 2024, it noted.

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“This isn’t short-term. The 365-day trend is declining, signaling structural selling pressure.”

Overall, Bitcoin spot demand remains in “deep contraction,” despite accelerating ETF and Strategy purchases, it stated before adding that the 30-day apparent demand growth stands at -63K BTC, “indicating that broader market selling pressure continues to outweigh institutional accumulation.”

In a separate post, CryptoQuant analyst ‘Woominkyu’ said that Bitcoin’s “supply in profit” has hit a multi-year floor, while “supply in loss” is spiking. “This alignment has historically marked the terminal phase of market corrections,” they said.

Elsewhere on Crypto Markets

Ethereum prices dipped back below $2,100 again, but were holding above the psychological $2,000 level at the time of writing.

The altcoins have been hit harder as usual, with heavier losses for BNB, Solana, Bitcoin Cash, Hyperliquid, and Canton.

“Everything that was rallying on peace hopes sold off immediately,” said ‘Bull Theory.’