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Trump’s Iran ultimatum triggers $232M liquidation cascade; crypto market sheds $45B in 30 minutes
Bitcoin dropped nearly $2,000 in under 30 minutes on Sunday after President Donald Trump threatened to strike Iran’s power infrastructure unless Tehran reopened the Strait of Hormuz within 48 hours, sending shockwaves through global risk assets and triggering one of the largest single-session liquidation events in crypto derivatives markets this year.
The world’s largest cryptocurrency slid to $69,141, down 2.26% on the day, as the threat, a sharp reversal from Trump’s comments just 24 hours earlier that he was considering “winding down” the conflict, caught leveraged traders badly offside.
Crypto Moves in Lockstep With Stocks
The broader crypto market fell 1.95% to a $2.38T market capitalisation, moving in near-perfect correlation with equities. Crypto’s 88% correlation with the S&P 500 and 92% correlation with gold, evidence that digital assets are being traded as macro risk instruments rather than independent stores of value.
Ethereum dropped 1.96% to $2,110, Solana shed 2.06% to $88.25, and Dogecoin fell 2.92% to $0.092. The CoinMarketCap Fear & Greed Index sat at 28, deep in fear territory.
Leverage Was the Accelerant
Bitcoin liquidations surged 86% in 24 hours, with long positions accounting for over 90% of the total, a sign the market had been positioned for a continued recovery before the geopolitical shock arrived. The average crypto RSI fell to 40.1, approaching oversold territory.
What Comes Next
Analysts are watching the $2.34T total market cap level as immediate support. A breach could expose the $2.29T level, the 78.6% Fibonacci retracement from the recent swing high. Recovery, most agree, hinges entirely on the next 48 hours of diplomatic headlines from Washington and Tehran.