Political turbulence overshadows conflict
Bitcoin traded in a broadly flat trend on Friday as market attention shifted from hostilities in the Middle East to major upheavals in US domestic politics. After opening the April 3 session just below $67,000, the leading cryptocurrency fell to $66,345 before rallying to an intraday high of $67,195. Bitcoin reflected this volatility throughout the day, falling back to $66,700 and retesting the $67,000 threshold before stabilizing near $66,500.
At 1 p.m. EDT, bitcoin was attempting to break the $67,000 mark for the third time. The cryptocurrency’s relative stability allowed its market capitalization to remain around $1.34 trillion, while bitcoin’s 24-hour liquidations remained below $31 million – a sharp decline from Thursday’s $103 million.
While the American bombing of a strategic Iranian bridge exacerbated geopolitical issues, the discussions were dominated by the dismissal of Pam Bondi by the president and the dismissal of the chief of staff of the American army, Randy George, by the secretary at Defense Pete Hegseth. With American markets closed for the Easter holidays, the immediate impact of these changes at the head of the army – in particular the dismissal of a high-ranking officer in the middle of an operation – remains uncertain.
However, some social media users suggested that the army chief of staff was ousted for opposing specific Trump administration policies. The appointment of Christopher LaNeve, seen by some as a stalwart, as acting chief of staff has fueled fears that the conflict could escalate into a dangerous new phase involving US ground forces in Iran.
Energy markets and macroeconomic impact
These developments have caused energy prices to soar. West Texas Intermediate (WTI) crude jumped about 11.4% to $111.54 a barrel, while Brent crude rose 7.8% to $109.03. In a rare market reversal, WTI rose above Brent, led by a surge in demand from Asian and European buyers seeking alternatives to disrupted supplies from the Persian Gulf. Traders in prediction markets are growing increasingly bullish on energy, with many betting that WTI could hit $120 or $130 a barrel this month if stability is not restored.
Since the beginning of March, the surge in oil prices has weighed on global stock markets and, more recently, on the cryptocurrency market. Although bitcoin lost just 0.3% as of Friday afternoon, analysts warn that a further escalation in fighting increases the likelihood that the asset will remain in a range between $66,000 and $70,000, or even fall further.
FAQ â“
- Why has bitcoin moved at a stable level despite political unrest in the United States? Because government shuffles overshadowed the markets while the stock markets were closed for Easter.
- Did the bombing of the bridge affect cryptocurrency prices? No, oil on the contrary jumped, while bitcoin remained in a range close to $67,000.
- Why has WTI surpassed Brent? Asian and European buyers diverted demand away from disrupted Gulf supplies.
- Could the escalation of the conflict put additional pressure on bitcoin? Yes, analysts warn that trading in the range between $66,000 and $70,000 could persist or weaken.
