Crypto and global equity markets weakened on Wednesday after President Donald Trump’s national address dashed hopes of a near-term de-escalation in the Iran conflict, sending oil prices sharply higher.

Bitcoin declined 2.2% to $66,609, reversing Tuesday’s gains as Trump warned that the U.S. would strike Iran “extremely hard” over the next two to three weeks. The comments marked a shift from earlier signals that had encouraged expectations of a potential resolution.

Selling pressure spread across the broader crypto market. Ether dropped 2.2% to $2,056, BNB fell 3.9% to $591, XRP lost 2.5% to $1.31, while Solana led losses with a 5.2% decline, extending its weekly drop to 13%.

The downturn followed a strong rally the previous day, when markets surged on optimism that the conflict could soon wind down. Asian equities had jumped as much as 4%, and S&P 500 futures also moved higher, reflecting the most positive sentiment since tensions escalated five weeks ago.

That optimism quickly unraveled after Trump’s nearly 20-minute speech, which offered no concrete policy changes, operational details, or signals of a ceasefire. His remarks on the Strait of Hormuz—suggesting it would reopen “naturally” once tensions ease—failed to provide a clear timeline.

The market reaction was swift. Brent crude rose above $106 per barrel, Asian stocks fell 2.1%, and U.S. and European equity futures dropped more than 1.2%. The dollar strengthened, while Treasuries came under pressure amid renewed inflation concerns.

Bitcoin’s recent price action reflects the broader uncertainty. The asset has spent the past five weeks trading in a wide range between roughly $60,000 and $73,000, rising on signs of de-escalation and falling on renewed geopolitical risks, without establishing a clear trend.

Investor sentiment remains deeply cautious. The Fear and Greed Index continues to sit in “extreme fear” territory, fluctuating between 8 and 14 over the past month.

There are some supportive factors. April has historically been one of bitcoin’s strongest months, with gains in 10 of the past 15 years and an average return of about 20%. The cryptocurrency also recently rebounded from key support near $60,000 and is attempting to reclaim its 50-day moving average.

However, seasonal strength may offer limited support in the face of ongoing geopolitical tensions. The repeated pattern of rallies driven by optimism and reversals triggered by escalation suggests that volatility will persist until there is clearer progress toward resolving the conflict.