Trump National Address ‘About-Face,’ Bitcoin Slumps Back to $66,000

TradingKey - Trump's major reversal on Iran triggers a nearly 3% drop in Bitcoin; upcoming non-farm payroll data becomes key.

On April 2, influenced by U.S. President Trump's reversal on Iran, the crypto market turned from gains to losses. Among them, Bitcoin ( BTC) plunged 2.91%, falling to around $66,000; Ethereum ( ETH) fell 3.39%, retreating to $2,000; XRP fell 2.57% to $1.3, and other major coins all saw varying degrees of decline.

Gains and losses of the top ten cryptocurrencies by market cap, Source: CoinMarketCap

The day before yesterday, U.S. President Trump signaled a withdrawal from the Iranian battlefield, boosting a collective rally in the cryptocurrency market. Yesterday, Trump's stance shifted dramatically; in a national address regarding the conflict in Iran, he claimed that "the United States will launch extremely heavy strikes against Iran within the next two to three weeks," a move that caught bulls off guard.

In the past 24 hours, over 140,000 people in the cryptocurrency market were liquidated, with the total amount reaching $422 million, of which long positions accounted for $249 million, nearly 60%. Over the last two days, influenced by Trump's erratic stance, the crypto market has experienced a rollercoaster ride, which is unfavorable for contract traders, especially those with high leverage; therefore, caution is advised.

From a technical analysis perspective, although Bitcoin prices plunged nearly 3% today, engulfing the gains from the previous two days, they remain within an ascending channel, indicating that the rebound structure has not been broken. However, once it falls below $66,000, it is likely to head towards the low of $60,000 seen on February 7 this year.

Bitcoin price chart, Source: TradingView

This Friday (April 3), the U.S. Bureau of Labor Statistics (BLS) will release the non-farm payroll (NFP) report for March, which could trigger intense volatility in the crypto market. Yesterday (March 1), the published "ADP Employment Report" showed that private employment in the U.S. increased by 62,000 in March, higher than the market expectation of 40,000 to 41,000. This data is considered a key leading indicator for non-farm payrolls and could therefore weaken expectations for a Fed rate cut, posing a short-term headwind for coin prices.

If the employment data released tomorrow is strong, it will drive up Treasury yields and the U.S. dollar; as a dollar-denominated risk asset, Bitcoin usually exhibits a negative correlation with the dollar. Furthermore, the market would revise downward expectations for the number of rate cuts in 2026, and since cryptocurrencies are highly dependent on market liquidity, the cooling of rate cut expectations will inhibit capital inflows.