Crypto Market Tanking! Is Trump to Blame for Today’s Crash?

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The crypto market has once again decided to take a nosedive, falling by 2.6%, now totaling a meager $2.37 trillion. This delightful downturn follows none other than US President Donald Trump’s announcement that the US campaign against Iran is heading into the “final phase” to “end the conflict once and for all.” Well, isn’t that comforting? As if we needed more excitement in the world.

  • The crypto market took a 2.6% tumble, reaching a paltry $2.37 trillion as tensions between the US and Iran sent a wave of risk-off sentiment rippling across global markets.
  • Rising oil prices above $100 have stoked fears of inflation, effectively dashing any hope of Fed rate cuts and piling additional pressure on those risky crypto assets.

Bitcoin (BTC), the supposed king of the cryptos, saw its value plummet by over 4%, landing at a measly $66,250. The market is now anxiously eyeing the $65,000 mark, which some are calling the “last line of defense” before it all goes downhill. Yes, it’s just as dramatic as it sounds.

Ethereum (ETH) followed suit, slipping by 3.4%, now teetering close to the $2,000 support level. Meanwhile, other crypto darlings like XRP, BNB, Solana, and Dogecoin lost anywhere from 2% to 6%. It’s truly a day for the history books-or at least a day to forget, if you’re holding any of these assets.

As if the market wasn’t chaotic enough, the falling crypto prices triggered a massive $420 million in liquidations across leveraged markets, as traders scrambled to unwind their positions. A staggering $255 million of this was wiped out from long liquidations. The Bitcoin and Ethereum markets accounted for $64 million each, further fueling the selloff. Talk about a race to the bottom.

The Crypto Fear and Greed Index, that reliable barometer of market sentiment, took another dive, dropping 5 points to a mere 27. Investors seem to be growing more fearful by the second, bracing themselves for even more volatility. I’m sure that’s exactly what they signed up for.

Crypto market braces for more intense military action in the Middle East

The crypto slide began shortly after Trump’s latest speech on Wednesday, where he enthusiastically informed the nation that the US military will be “hitting Iran extremely hard” in the next 2-3 weeks. A decisive win, he said. We can all look forward to that, right? Meanwhile, the US aims to secure energy infrastructures, which will surely lead to more uncertainty. Trump also urged the Gulf countries like Saudi Arabia and the UAE to pressure Tehran to relinquish control of the Strait of Hormuz. No big deal.

But don’t worry, it wasn’t all bad news. Trump also graciously mentioned that talks for a ceasefire are ongoing. How considerate. Iran, on its side, is demanding a permanent end to the war, compensation for damages, and a full US military withdrawal from the region. Because, obviously, that sounds perfectly reasonable in the midst of a conflict.

As if that wasn’t enough, the threat of escalation pushed crude oil prices above $100, setting off a cascade of selloffs in crypto, stocks, and even safe-haven assets like gold. Yes, gold too! Prices for gold fell 4% to $4,590 today, and silver didn’t fare any better, tumbling 7.5%. In a stunning display of investor panic, Asian stocks like Japan’s Nikkei 225 also dropped by 2.5%. It’s as if no one is immune to this glorious mess.

The soaring oil prices have triggered fears of rampant inflation. Naturally, the market expects the Federal Reserve to either keep rates high or raise them further, all in an effort to combat inflation. And let’s not forget, the prospect of higher interest rates is always bad news for risk assets like crypto. It’s almost as though the market is doomed to repeat the same cycle of panic. How very predictable.

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2026-04-02 09:49