Crypto and stocks tumble after Trump declares ceasefire 'over' following Iran strikes
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- Bitcoin fell to $62,000 and ether dropped more than 2% after Trump declared the Iran ceasefire "over" and called negotiations a "waste of time," though talks reportedly continue.
- US Central Command struck more than 60 IRGC small boats in the Strait of Hormuz to prevent disruption to international shipping, prompting Iranian retaliatory attacks on Kuwait and Bahrain that fueled the risk-off move.
- Altcoins bore the brunt of the sell-off, with $350 million of the $450 million in total liquidations hitting altcoin pairs; JUP, ETHFI, and PUMP lost between 5.5% and 9.3%, and Solana retraced its entire July rally back to $77 from a Monday test of $84.
- US equities also declined, with Nasdaq 100 and S&P 500 futures falling as much as 1.5%, while the Dollar Index rose on inflation concerns stemming from renewed Middle East conflict.
- Derivatives positioning showed Bitcoin open interest dropping to 730K BTC from over 740K a day earlier—suggesting traders aren't actively shorting the rally—while Deribit's one-week options skew jumped to nearly 20% favoring puts from 16%, confirming hedging demand.
- DeFi token MORPHO bucked the bearish trend, gaining 4% as its total value locked hit a record 4 million ETH, while the average altcoin relative strength index slipped to 40/100 from 47/100, entering "oversold" territory.
Why it matters: The $450 million in liquidations—roughly 78% concentrated in altcoins—wiped out leveraged positioning while Bitcoin's declining open interest suggests the slide is driven by spot selling rather than outright bearish bets, meaning the move lacks the structural fuel for a deeper cascade. With BTC call options most actively traded at the $80,000 strike and altcoin RSI now in oversold territory, some derivatives traders are simultaneously hedging downside and positioning for a rebound.
