--- title: "With Trump's ultimatum looming, Bitcoin has fallen back to $68,000: Is this round of pullback a short-term shakeout driven by risk aversion, or a prelude to greater volatility?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39739763.md" description: "On Tuesday, Bitcoin was once again dragged into the vortex of risk assets by geopolitical conflicts. As Trump's deadline for Iran approached, Bitcoin fell by about 2.2% at one point, retreating to the $68,000 level, erasing the rebound that had just pushed it back above $70,000 the previous day; Ethereum also weakened in sync. At the same time, Trump reiterated that day that the deadline would not be extended, global stock futures turned weaker, while oil prices remained high, with Brent having risen more than 50% since the conflict erupted. In this round of volatility, Bitcoin was not the only asset being sold, but its performance was more resilient than many had imagined..." datetime: "2026-04-07T09:37:12.000Z" locales: - [en](https://longbridge.com/en/topics/39739763.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39739763.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39739763.md) author: "[Elena mi](https://longbridge.com/en/profiles/25148023.md)" --- # With Trump's ultimatum looming, Bitcoin has fallen back to $68,000: Is this round of pullback a short-term shakeout driven by risk aversion, or a prelude to greater volatility? On Tuesday, Bitcoin was once again dragged into the vortex of risk assets by geopolitical conflict. As Trump's deadline for Iran approached, Bitcoin fell by approximately **2.2%**, retreating to the **$68,000** level, erasing the rebound that had just pushed it back above **$70,000** the previous day; Ethereum also weakened in sync. Meanwhile, Trump reiterated that day that the deadline would not be extended, global stock futures weakened, while oil prices continued to hold at high levels, with Brent having risen over **50%** since the conflict erupted. In this round of volatility, Bitcoin was not the only asset being sold, but its performance was more resilient than many imagined. In early April, market risk appetite recovered briefly due to expectations of the conflict cooling down, and Bitcoin briefly returned above **$70,000** on Monday; however, after Trump pushed the Iran issue back into a high-pressure state, the market quickly switched back to risk-off mode. For digital assets, the most troublesome issue at hand is not the single-day drop, but that capital is still waiting for a clear answer: **Will the war end quickly, or will it continue to push up energy, inflation, and interest rate expectations?** The market's biggest current concern is precisely the supply disruptions and higher inflation stickiness caused by an escalation of the conflict. However, the bears are not completely in control either. US spot Bitcoin ETFs recorded **a net inflow of $1.32 billion in March**, ending four consecutive months of net outflows, indicating that institutional capital has not completely withdrawn. More importantly, the market is not simply trading on whether Bitcoin will rise, but is trading on two catalysts: first, whether a **sustained ceasefire** will emerge in the Iran conflict, and second, whether US crypto legislation will continue to advance. The **Clarity Act** is pushing for a clearer regulatory framework for digital assets in the US; if this process continues, the potential for institutional participation will be greater than it is now. Therefore, Bitcoin currently seems more like it's stuck in a range awaiting confirmation: on one side, geopolitical risk is pushing it down, while on the other, ETF inflows and regulatory expectations are providing support. In the short term, the $68,000 to $70,000 range will likely see continued back-and-forth; in the medium term, what truly determines the direction is whether the two variables of the Strait of Hormuz situation and US crypto legislation can simultaneously provide positive feedback. The current market is neither completely bearish nor anywhere near a time for complacency. ### Related Stocks - [ABTC.US](https://longbridge.com/en/quote/ABTC.US.md) - [GBTC.US](https://longbridge.com/en/quote/GBTC.US.md) - [SBET.US](https://longbridge.com/en/quote/SBET.US.md)