‘Resilient after crashing 40%’ – Why Bitcoin held steady during U.S.-Iran tensions

ambcryptoPublished on 2026-04-08Last updated on 2026-04-08

Abstract

The article examines Bitcoin's resilience during heightened U.S.-Iran tensions in early 2026. Despite a significant 40% drop from its mid-January high of $96,000 to $65,000 by late February, Bitcoin held relatively steady compared to traditional assets after U.S. President Donald Trump made nuclear threats against Iran. While the threats initially caused market shock and pushed the Crypto Fear and Greed Index into "Extreme Fear," analysts noted Bitcoin's stickiness and a lack of forced sellers. The situation de-escalated following an announcement of an immediate ceasefire, which prompted a market rebound. At press time, the global crypto market cap rose 4.42% and Bitcoin traded at $71,884. The article also notes that Polymarket odds of Trump's impeachment reached 65% due to the event.

‘Operation Epic Fury,’ which began on the 27th of February under U.S. President Donald Trump, has since then shaken the crypto market.

After witnessing the New Year optimism in January 2026, the crypto market derailed with BTC dropping from a high of $96,000 in mid-January to $65,000 by the 28th of February.

This downward trend continued, and even after multiple attempts, Bitcoin was unable to reclaim the $75,000 mark.

President Donald Trump’s threat jitters nations worldwide

Needless to say, this high level of volatility persisted until U.S. President Donald Trump made nuclear threats directed towards Iran.

Taking to his social media platform – Truth Social, Trump warned,

A whole civilization will die tonight, never to be brought back again. I don’t want that ‌to ⁠happen, but it probably will.

This sent shockwaves through the nation and even the crypto world, which had turned bearish after modest bullish signs just a day before.

Digital assets class vs the traditional asset class

However, if we compare Bitcoin [BTC] and the broader crypto market to the S&P 500, gold, and other traditional asset classes, then it stood strong. In fact, as per a recent report by Polymarket, Iran was also accepting crypto payments as tolls from ships passing through the Strait of Hormuz.

Remarking on the same, Anthony Scaramucci, Financier and former White House Communications Director, in a recent podcast with Galaxy Digital’s CEO Michael Novogratz, said,

One thing that is sticky and seems resilient after crashing 40% is Bitcoin.

Echoing similar sentiments, but with a pinch of uncertainty, Novogratz added,

We’re stuck between some sellers and some buyers. And volumes are way down. It’s a lot less exciting. But there’s no force sellers anymore.

Yet, despite this optimism, the Crypto Fear and Greed Index was in the “Extreme Fear” zone at press time. Mostly swinging between “Fear” and “Extreme Fear” zones amidst geopolitical turmoil, the crypto market has only reflected cautious investor sentiment.

Is Trump’s impeachment around the corner?

Needless to say, the recent threat by Trump had pushed many to call for U.S. President Trump’s impeachment under the 25th Amendment.

That said, the Polymarket odds of Trump’s impeachment before his term ends also stood at 65% at the time of reporting.

Taken together, this shows how Trump’s pro-crypto policies and plans post-becoming the 47th President of the U.S. now seem debatable.

Peter Schiff takes a different route

However, while the entire world was crippling with this news, Peter Schiff, Chief Economist & Global Strategist at Europac, called this threat a bluff as he said,

If they believed there was a reasonable probability that Trump would actually kill Iranian civilization tonight, stocks would be a lot lower and oil a lot higher.

Schiff argued,

If investors don’t believe Trump, why would the Iranian leadership?

Ceasefire and its impact on the crypto market

However, as of the 8th of April, 5:20 AM IST, Prime Minister of the Islamic Republic of Pakistan, Shehbaz Sharif, injected a breath of fresh air globally when he noted,

Now, with an agreement on an immediate ceasefire from both ends, the crypto market turned green.

At press time, the global crypto market cap stood at $2.45 trillion, up 4.42% over the last 24 hours. At the same time, Bitcoin was changing hands at $71,884.44 after surging by 5.04% during the same period.

Final Summary

The escalating U.S.-Iran tensions had sent the crypto market into the hands of sellers.
The immediate ceasefire announcement shifted the market from bearish to bullish, but fear remains.

DeepSeek Funding: Liang Wenfeng's 'Realist' Pivot

DeepSeek, a leading Chinese AI company, has initiated its first external funding round, aiming to raise at least $300 million at a valuation of no less than $10 billion. This move marks a significant shift from its founder Liang Wenfeng’s previous idealistic stance of rejecting external capital to maintain independence. Despite strong financial backing from its parent company, quantitative trading firm幻方量化 (Huanfang Quant), which provided an estimated $700 million in revenue in 2025 alone, DeepSeek faces mounting challenges. Key issues include a 15-month gap in major model updates, delays in its flagship V4 release, and the loss of several core researchers to competitors offering significantly higher compensation. The company is also undergoing a strategic pivot by migrating its infrastructure from NVIDIA’s CUDA to Huawei’s Ascend platform, a move aligned with China’s push for technological self-reliance amid U.S. export controls. However, DeepSeek lags behind rivals like智谱AI and MiniMax—both now publicly listed—in areas such as product ecosystem, multimodal capabilities, and commercialization. The funding round, though relatively small in scale, is seen as a way to establish a market-validated valuation anchor, making employee stock options more competitive and facilitating talent retention. It also signals DeepSeek’s transition from a pure research-oriented organization to a commercially-driven player in the global AI ecosystem.

marsbit15m ago

DeepSeek Funding: Liang Wenfeng's 'Realist' Pivot

marsbit15m ago

Warsh, Trump's Next 'Scapegoat' at the Federal Reserve?

Kevin Warsh, a nominee for the Federal Reserve chair, faces a challenging confirmation hearing amid political pressure from former President Donald Trump to implement immediate and significant interest rate cuts. Warsh has proposed reforms including reducing the Fed’s communication frequency and shrinking its $6.7 trillion balance sheet. However, market expectations for rate cuts remain limited, creating tension with Trump’s demands. Warsh’s stance has shifted over time, from hawkish during the financial crisis to more dovish recently, citing AI-driven productivity gains. His confirmation is further complicated by Republican Senator Thom Tillis’s threat to block the nomination unless an investigation into current Chair Jerome Powell is dropped. Trump has warned of firing Powell if he doesn’t leave on time. Observers note that Warsh risks becoming a "scapegoat"—either by yielding to political pressure and fueling inflation, or by resisting and facing Trump’s backlash. His ties to Trump’s circle and Wall Street support may aid his nomination, but his ability to balance political demands with the Fed’s credibility remains uncertain. Historical precedents, like Arthur Burns’s compliance with Nixon, highlight the risks of political interference in monetary policy.

marsbit20m ago

Warsh, Trump's Next 'Scapegoat' at the Federal Reserve?

marsbit20m ago

Plunging 10% Then Surging: Weekend Crude Oil Market Watch

Following a 10% plunge, oil prices surged over the weekend as geopolitical tensions in the Strait of Hormuz escalated dramatically. The initial market optimism, driven by the strait’s brief reopening on Friday, quickly reversed on Saturday when Iran reinstated restrictions and fired on vessels, halting nearly all traffic. In response, oil contracts rose approximately 4.52%, while S&P futures fell nearly 0.8%. U.S. President Trump alternated between diplomatic gestures—sending an envoy for talks—and threats to destroy Iranian infrastructure if no deal was reached. Iran rejected further negotiations, fearing a U.S. attack before the midweek ceasefire deadline. This triggered another spike in oil, surpassing Saturday’s highs, and further pressured equity markets. Crypto-related stocks underperformed significantly. Market optimism is expected to be punished, and the week ahead hinges on whether Iran maintains its refusal to negotiate.

marsbit28m ago

Plunging 10% Then Surging: Weekend Crude Oil Market Watch

marsbit28m ago

6,000 CEOs Admit AI 'Did Nothing', Yet It Was Used to Lay Off 40,000 People in Q1 This Year

A study by the National Bureau of Economic Research (NBER) surveying 6000 executives across four countries reveals that nearly 90% of businesses report AI has had "no measurable impact" on employment or productivity over the past three years. Despite global AI investments exceeding $250 billion in 2024, only 12% of CEOs reported both cost reductions and revenue growth from AI. Contrastingly, in Q1 2026, the industry saw 78,557 tech job cuts, with 47.9% attributed to AI and automation. Critics label this contradiction an "AI version of the Solow Paradox," referencing the visible lack of AI's effect in productivity data amid widespread adoption. While some leaders, like Anthropic’s CEO, predict AI will eliminate half of entry-level white-collar jobs, others accuse firms of "AI washing"—using AI as a pretext for layoffs originally planned due to over-hiring or weak demand. However, companies like IBM and Cognizant are bucking the trend by increasing entry-level hiring and retraining staff to work alongside AI. Economists suggest a "J-curve" effect may be underway, where initial productivity stagnation is followed by significant gains, as was seen with IT in the 1990s. The transition remains challenging, with true productivity improvements expected within 6–12 months.

marsbit29m ago

6,000 CEOs Admit AI 'Did Nothing', Yet It Was Used to Lay Off 40,000 People in Q1 This Year

marsbit29m ago

Solana Q1 Report: Revenue Plunges 68% Year-on-Year, Developers Decrease by 30%

Solana Q1 2026 Report: Key Metrics Show Significant Decline Amid Market Reset Solana experienced a substantial downturn in Q1 2026, with key performance indicators reflecting a broader market cooling. Total network revenue (REV) fell to $89.9 million, down 68% year-over-year (YoY) and 1.4% quarter-over-quarter (QoQ). This decline was driven by reduced speculative activity, which had previously fueled the network during the 2024/2025 bull market. Key revenue components saw mixed results: base fees dropped 8.7% QoQ, Jito tips (MEV) fell 19.7%, priority fees rose 23%, and vote fees declined 44.5%. The annualized real yield for stakers was just 0.17%, down 67% YoY. Network GDP, generated by top applications, fell 7% QoQ to $451 million. Pump Fun emerged as a standout, generating $103 million (up 3% QoQ), surpassing Solana's L1 revenue. However, daily active addresses averaged 2.4 million, down 4.8% YoY. Stablecoin supply on Solana reached $15.9 billion, down 2.7% QoQ but up 18% YoY. USDC and USDT remained dominant. DEX volumes averaged $3.2 billion daily, with private DEXs now accounting for 60% of all volume. The network's net dilution rate was 4.38%, while the cost to produce $1 of REV was $8.10, up 93% YoY. The number of new tokens created on launchpads grew 42% QoQ to 3 million, with Pump Fun dominating 85% of this market. Despite the downturn, Solana's core strengths remain: its position as a hub for retail trading apps, potential in perpetual markets, and growing use in stablecoin-based fintech applications, particularly in Latin America. However, developer activity declined 32% YoY, slightly worse than Ethereum's 29% drop. The network must now focus on attracting traditional finance, competing in perpetual markets, and sustaining developer ecosystem growth to drive the next expansion cycle.

marsbit53m ago

Solana Q1 Report: Revenue Plunges 68% Year-on-Year, Developers Decrease by 30%