Crypto markets slide on geopolitical tensions, oil surge

April 02, 2026 (MLN): Bitcoin retreated toward the $66,000 level, facing immediate pressure from institutional investors following $173.76 million in outflows from spot ETFs.

The broader crypto market mirrored BTC’s decline, with most major coins moving lower.

The sell-off was triggered after President Trump’s prime-time address on the ongoing US-Iran conflict dashed expectations of a swift ceasefire.

He warned that US military operations against Iran could continue for “two to three weeks,” sending oil prices soaring above $106 per barrel an increase of more than 5% and reigniting inflation concerns.

Bitcoin, which had surged to $69,170 on April 1 amid hopes for a peaceful resolution, slipped back below $67,000.

Among the top ten cryptocurrencies, Solana experienced the steepest decline, falling nearly 6%. Meanwhile, UNUS SED LEO surged to tenth place, pushing Cardano down to eleventh, and Hypeliquid dropped to twelfth in market capitalization.

Market observers note that forward-looking catalysts remain a mix of optimism and caution.

Morgan Stanley is reportedly preparing a low-fee Bitcoin ETF filing, while Coinbase highlights ongoing progress on the regulatory CLARITY Act.

Despite these potential positives, macroeconomic pressures including climbing oil prices have reduced the likelihood of near-term Federal Reserve rate cuts, keeping crypto sentiment in the red, according to Analytics Insight.

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