Here’s Why the Crypto Market Is Crashing as the Bitcoin Price Dips Below $67K

President Trump delivered a national address on April 2. The market expected de‑escalation. Instead, they got more war.

Trump said the Iran conflict will last another two to three weeks. He threatened to strike Iranian power plants. He claimed Iran’s navy and air force are already destroyed. He also said no future oil imports will move through the Strait of Hormuz. The message was clear: the U.S. is not backing down.

Markets reacted instantly. Oil spiked above $104 per barrel. The Bitcoin price dropped below $67,000. U.S. futures turned red. The 10‑year Treasury yield pushed higher.

The problem is simple; the market had priced in a ceasefire. Traders were positioned for peace. Instead, Trump doubled down on aggressive rhetoric. No de‑escalation means escalation. Risk assets hate that.

Crypto is not a safe haven in this environment. It trades like any other rates‑sensitive risk asset. When oil jumps and yields rise, Bitcoin gets sold.

ETF Outflows and Weak Technicals

The selling did not come only from retail panic. Institutional money is also pulling out. On April 1, spot Bitcoin ETFs recorded about $174 million in net outflows. BlackRock’s IBIT led the way with roughly $86.5 million in outflows. Fidelity’s FBTC and Bitwise’s BITB also posted sizable redemptions.

Ethereum ETFs did not escape either. U.S. spot Ethereum ETFs saw a net outflow of about $7.1 million on the same day.

Total assets under management are shrinking across the board. The total crypto market cap is testing its 24‑hour low at $2.27 trillion. The RSI sits at 39.29, which is basically bearish momentum. It is not yet oversold, which means more downside could come before buyers step in.

Institutional demand remains weak. There is no catalyst to reverse the trend. Not yet.

Read also: How Much Could XRP Be Worth if Bitcoin Price Crashes to $45,000?

Crypto Price Prediction: Near‑Term Outlook

The next two to three weeks depend entirely on news. If the war continues as promised, expect more pain. The key level to watch is $2.27 trillion for total market cap. A daily close below that opens the door to the yearly low of $2.17 trillion.

On the macro side, March U.S. CPI data drops on April 10. That will be the next major cue for rates and the dollar. A hot inflation number could push Bitcoin lower. A cool number might offer relief.

For now, the market is stuck in risk‑off mode. Stability requires a reduction in Middle East tensions. Until then, every tweet and address from the White House will move prices.

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