BTC sinks to 2026 low as Iran escalation fears hit oil; ETF outflows $174m
Bitcoin (BTC) slid to $65,834 on Apr 3, its lowest level since 2026, after Trump said the US would hit Iran “extremely hard.” The sell-off was reinforced by a stronger US dollar and oil moving above $106, pushing markets into a risk-off mood.
The move spread across crypto. Ethereum (ETH) fell about 5% and BNB dropped roughly 6.8% as Strait of Hormuz tensions remained a key driver for broader risk sentiment. Spot Bitcoin ETFs recorded $174 million in net outflows on Wednesday, signalling tightening institutional liquidity and adding pressure to BTC.
A brief relief came from reports of Oman mediation for safe passage protocols, with oil easing around $5 and helping the Nasdaq recover most of its earlier losses. Still, the latest update leaves traders positioned for the next 48 hours of geopolitical headlines, with BTC bounces likely capped unless de-escalation signs improve.
Bearish
BTC is being pulled lower by two reinforced factors: heightened Iran/Strait of Hormuz escalation risk (which drives broader risk-off and lifts oil) and continued spot Bitcoin ETF net outflows ($174m), which tightens institutional liquidity. Even with a short-lived relief from Oman mediation reports and oil easing, the latest coverage stresses traders are still positioned for volatile headlines over the next 48 hours. That setup typically supports downside control in the near term and can keep rebounds capped unless de-escalation becomes clear.