Was the Ceasefire Canceled Again? $450 Million Evaporates in the Crypto Market
Escalating tensions in the Middle East and U.S. President Trump’s announcement that the ceasefire has ended caused crypto markets and global stock exchanges to experience a sharp decline.
The cryptocurrency market turned red on Wednesday as investors fled risky assets following new airstrikes against Iran. U.S. President Donald Trump, in a statement to NATO leaders, declared the ceasefire over, stating that negotiating with Iran is a “waste of time.” This geopolitical tension has put heavy pressure on both digital assets and traditional financial markets.
U.S. Central Command’s strikes on Iranian boats to protect international maritime traffic and Iran’s retaliation triggered inflation concerns. With the rise of the dollar index, Bitcoin (BTC) and Ethereum (ETH) lost more than 2% in value. On the altcoin side, losses were much deeper; assets like JUP and ETHFI showed declines of over 5%.
Sharp Retracement in Bitcoin Price
According to current data, the Bitcoin price fell from $64,131 to the $61,763 range within the last 24 hours, unsettling investors. The leading cryptocurrency, with a market capitalization of approximately $1.24 trillion, is currently trying to stabilize around the $62,057 level. During this process, the amount of open interest in futures markets—meaning the total number of active contracts not yet closed—decreased from 740,000 BTC to 730,000 BTC.
This market decline caused investors to turn to options trading for hedging purposes. In particular, volatility indices measuring expectations for future Bitcoin price fluctuations have risen. Deribit data shows that demand for “put” options, which serve as insurance against price drops, has increased. However, despite this, the high volume still seen in call options at the $80,000 level indicates that long-term hope remains intact.
Altcoin Market and Liquidations
Selling pressure in the altcoin market resulted in $350 million of the total $450 million in liquidations originating from these assets. Solana (SOL) pulled back to the $77 level, completely erasing its gains from the beginning of the week. On the other hand, despite the general market decline, some projects like Morpho (MORPHO) managed to diverge positively with a record increase in their total value locked.
Despite the general pessimism in the market, the Relative Strength Index (RSI) of many altcoins dropped to the 40 level. In technical analysis, this situation—indicating that an asset is oversold and the price is lower than it should be—is considered a recovery signal by some investors. However, as long as geopolitical risks persist, the vulnerability in the market is expected to continue.