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Trump Iran War Speech Triggers Crypto Market Selloff

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bitcoin and altcoin price today

Key Insights

  • Crypto market reversed fast as Trump’s Iran war stance crushed hopes of de-escalation and triggered risk-off selling.
  • Bitcoin trades like a macro asset, while altcoins lead losses as oil spikes, yields rise, and the dollar strengthens.
  • Market outlook remains fragile, with traders watching war signals and dollar strength for the next crypto move

What happens when markets price in peace but receive a tougher war stance instead? They sell first and reassess later. That is exactly what unfolded after Donald Trump addressed the Iran conflict from the White House on April 1.

Ahead of the speech, expectations had been building around a possible de-escalation. Analysts, including Kobeissi Letter, pointed to signals suggesting a potential wind-down. Instead, Trump reinforced a hardline position, stating that the United States would continue its aggressive posture toward Iran.

The reaction was immediate and broad-based—crypto, equities, oil, and the U.S. dollar all reversed sharply.

Crypto Market Reverses After Trump’s Iran Remarks

The crypto market quickly erased its short-lived relief rally following the speech. Investors hoping for clarity on de-escalation or a reopening timeline for the Strait of Hormuz were left disappointed.

bitcoin and altcoin price today

Source: Coinmarketcap

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As a result, selling pressure returned across digital assets:

  • Bitcoin hovered around $66,600
  • Ethereum dropped near $2,050
  • XRP traded around $1.31
  • BNB held near $590
  • Solana led losses among major altcoins

This price action reinforces a key trend: Bitcoin is not behaving as a traditional safe-haven asset during this conflict. Instead, it is trading more like a macro-sensitive risk asset.

The speech effectively dismantled the emerging peace narrative, pushing markets back into a defensive stance. Altcoins, particularly high-beta assets like Solana, absorbed the heaviest losses as traders reduced risk exposure.

Oil Surge and Macro Pressure Weigh on Crypto

Beyond crypto, the broader macro environment shifted rapidly. Following Trump’s remarks, Brent crude surged over 6% to $107.69, reflecting heightened geopolitical risk and concerns over supply disruptions.

Global markets reacted sharply:

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  • U.S. stock futures fell 1.3%
  • Japan’s Nikkei dropped 2.4%
  • South Korea’s Kospi declined 4.7%

For crypto markets, this macro shift is critical.

Rising oil prices can fuel inflation expectations, which in turn strengthens the U.S. dollar and keeps bond yields elevated. These conditions typically pressure risk assets, including cryptocurrencies.

At the same time:

  • The 10-year Treasury yield climbed to 4.376%
  • The U.S. Dollar Index (DXY) held firm above 100

This environment explains why altcoins sold off more aggressively than Bitcoin, as traders moved to reduce volatility exposure rather than chase uncertain upside.

Traders Shift to Risk-Off Mode

The immediate takeaway from the market reaction is clear: traders are prioritizing capital preservation.

Going forward, markets will focus on two key signals:

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  1. Any softening in geopolitical rhetoric
  2. Reduced risk to global shipping routes, particularly the Strait of Hormuz

Without improvement on either front, the crypto market is likely to remain highly sensitive to headlines and prone to sharp swings.

The pre-speech rally demonstrated that bullish sentiment still exists—but it is fragile and easily disrupted by macro developments.

Macro Now Drives Crypto

The latest selloff highlights a broader shift in how digital assets are behaving.

Geopolitics is influencing crypto through macroeconomic channels rather than crypto-native factors. Oil prices, bond yields, the U.S. dollar, and equity markets are now leading indicators, with crypto reacting afterward.

While blockchain-specific developments still matter, traders increasingly need to interpret global macro conditions before making crypto decisions.

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Outlook: Defensive Trend Likely to Continue

Looking ahead, digital assets are expected to remain in a defensive posture as long as geopolitical tensions persist in the Middle East.

Although April seasonality has historically favored bullish momentum, the current environment is dominated by a hope → headline → reversal cycle. The Trump Iran speech is a clear example of how quickly sentiment can shift.

A sustained recovery in crypto will likely depend on:

  • A formal ceasefire or de-escalation
  • Stabilization in oil prices
  • Weakness in the U.S. dollar

Until then, the U.S. Dollar Index (DXY) remains a critical indicator. A strengthening dollar continues to act as a major headwind for Bitcoin and the broader altcoin market.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Crypto World

Pyth soars 9% following Polymarket integration. Will it rally higher?

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Pyth soars 9% following Polymarket integration. Will it rally higher?

Key takeaways

  • PYTH is up 9% in the last 24 hours, outperforming other major cryptocurrencies.
  • The rally comes following Pyth Network’s integration with Polymarket.

PYTH, the native coin of the Pyth Network, is one of the best performers in the crypto market over the past 24 hours. It could rally higher in the near term as the broader market recovers from Thursday’s slump.

PYTH rallies on Polymarket integration

On Thursday, Pyth Network revealed in a blog post that Polymarket, the world’s largest prediction market platform, has integrated Pyth Pro as its data source for a new suite of traditional asset contracts.

The initial offerings include gold, silver, and major equity index ETFs. Polymarket now relies on Pyth Pro’s data to power its daily up/down and daily close markets, with live price charts updated every second to ensure full transparency.

The integration has seen PYTH rally by 9% in the last 24 hours and now trades at $0.0420 per coin. 

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Pyth Pro provides real-time price data through WebSocket, which Polymarket samples every second to display as a live “price to beat” chart. This allows traders to monitor the market’s status relative to their position in real-time.

The selected assets span a wide range of traditional finance, including major equity indices, commodities like gold, silver, WTI crude, and natural gas, along with over a dozen high-profile U.S. equities such as TSLA, COIN, and PLTR.

Polymarket has integrated this real-time data as a key component of its perpetual futures trading platform. Pyth Pro delivers institutional-grade market data directly from top firms, ensuring it is accurate, transparent, and affordable across all asset classes and regions.

To enhance this, Pyth has partnered with industry leaders and government agencies like Cboe, Jane Street, Revolut, and the U.S. Department of Commerce. This collaboration has helped establish a new model to make market data more accessible, accurate, and transparent.

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PYTH eyes $0.050 as bulls step in

The PYTH/USD 4-hour chart is bearish and efficient despite the coin adding 9% to its value in the last 24 hours.

The technical indicators have flipped bullish, indicating that the bulls are now in control of the market. The RSI of 63 is well above the neutral 50 and would enter the overbought territory if the rally persists.

PYTH/USDT 4H Chart

The MACD lines are also within the positive region, indicating a strong bullish bias. If the rally continues, PYTH could retest the $0.050 psychological level for the first time since March 17.

However, if the bears regain control, PYTH could retest the Thursday low of $0.038 over the next few hours or days.

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Drift Seeks Contact With The Hacker After $280M Exploit

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Drift Seeks Contact With The Hacker After $280M Exploit

Drift Protocol, a Solana-based decentralized exchange (DEX), said Friday it had opened onchain contact with wallets tied to funds stolen in the exploit that outside firms have estimated at roughly $280 million to $286 million.

Drift said on X that it had initiated onchain contact with wallets holding the stolen Ether (ETH), seeking to open a line of communication.

The team sent onchain messages from its Ethereum address (0x0934faC) to four wallets linked to the exploiter at the time of publication, urging the attacker to reach out via Blockscan chat. “We are ready to speak,” Drift said.

Onchain messaging has become a common tactic in exploit response, allowing protocols to communicate directly with attackers while preserving anonymity. In past cases, such as the Euler Finance hack, similar outreach led to the partial recovery of funds.

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Drift’s onchain message to the Drift Exploiter on Friday. Source: Etherscan

Anonymous sender tries to pressure the attacker

Drift’s communication came hours after an unknown sender using the ENS name readnow.eth also reached out to wallets linked to the attacker on Thursday via onchain messages.

The sender claimed to know the identities behind the attack and demanded a payment of 1,000 ETH in exchange for withholding information.

Source: Etherscan

The claims could not be independently verified and may represent an attempt to mislead or pressure the wallet holder. The incident highlights how, alongside official communications, unverified messages can circulate onchain after crypto exploits.

Solana fallout keeps spreading

According to SolanaFloor, Drift’s exploit has so far affected at least 20 Solana protocols, including the decentralized finance (DeFi) platform Gauntlet, which was estimated to be impacted to the scale of $6.4 million.

Blockchain security platform Cyvers said the impact was still expanding as of Friday morning, with no funds being recovered 48 hours past the attack.

Cyvers said that the attack was likely a “weeks-long, staged operation,” noting that the attacker set up durable nonces, a Solana feature allowing users to pre-sign transactions for future execution, days before the exploit.

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Related: Crypto hackers steal $169M from 34 DeFi protocols in Q1: DefiLlama

“This closely mirrors the Bybit hack, different technique, same root issue: signers unknowingly approving malicious transactions,” Cyvers added.

Some industry observers, including Ledger chief technology officer Charles Guillemet, suggested the exploit may involve North Korea-linked actors, though details remain unconfirmed.

Magazine: Nobody knows if quantum secure cryptography will even work

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