Trump issues final ultimatum to Iran, Bitcoin declines along with risk assets

How does AI’s Trump’s final ultimatum influence the nerves of the cryptocurrency market?

Source: Global Market Broadcast

On Tuesday, ahead of the deadline set by President Trump for Iran, cryptocurrencies weakened along with broader market moves, with Bitcoin falling in response.

At 7:20 a.m. London time, the world’s largest cryptocurrency fell by 2.2%, trading at about $68,460. The drop erased the previous day’s gains; earlier, Bitcoin had briefly broken above $70,000 for the first time since March. Other digital assets also fell at the same time, with Ethereum—the world’s second-largest cryptocurrency—dropping by as much as 2.8%.

Before the deadline Trump set for Tuesday, global stock markets were roiled. Trump threatened to bomb Iran’s civilian infrastructure unless the Strait of Hormuz resumed navigation. S&P 500 index futures fell by 0.4%.

BTC Markets analyst Rachael Lucas said Bitcoin’s “near- to medium-term outlook remains bearish.” She added that the market is in a wait-and-see mode: “The bulls lack enough confidence to sustain the breakout, and the bears cannot force a decisive market downturn.”

Earlier reports said Iran rejected a ceasefire proposal, and the risk of escalation in the US-Iran war has largely kept investors on the sidelines. Trump said keeping open this critical trade route would be part of any end-of-war agreement.

Since the outbreak of war, oil prices have surged. Brent crude oil continued rising on Tuesday and has gained about 50% in total since the conflict erupted at the end of February. Gold’s performance was roughly flat that day, but it has fallen by more than 10% since the war began.

Bitcoin has shown relatively more resilience, with signs that institutional selling pressure is easing. On Monday, U.S.-listed spot Bitcoin ETFs recorded a net inflow of $471.3 million, extending last week’s inflow of $22.3 million.

Since the beginning of March, Bitcoin prices have mostly been consolidating in the $65,000 to $75,000 range. Since the major sell-off in last October, cryptocurrency trading has been sluggish. At present, traders are watching for the end of the war and new U.S. cryptocurrency legislation—both of which could push digital-asset prices higher.

Lucas said: “The bullish scenario depends on two main catalysts: first, a confirmed and sustainable ceasefire agreement between the U.S. and Iran, which would push oil prices below $100; second, the passage of the U.S. ‘Digital Asset Market Clarity Act’ (CLARITY Act) by the end of April. Institutional market participants are closely watching this bill and see it as a key signal of regulatory easing.”