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Key Insights:
- Bitcoin dips after Trump urges evacuation of Tehran amid G7 exit.
- $80B wiped from crypto markets as altcoins drop up to 6%.
- BTC skew flips bullish to bearish, signaling growing downside hedging.
Bitcoin plunged as Trump warned Americans to evacuate Tehran. Crypto markets lost $80B as altcoins fell harder, while derivative data flagged growing fear despite bullish chart signals.
Bitcoin Drops Below $107K After Trump’s Sudden G7 Exit
Bitcoin price fell sharply late Monday following a chilling statement from U.S. President Donald Trump regarding escalating conflict in the Middle East. The move came after Trump abruptly left the G7 summit in Canada, citing urgent national security matters linked to Tehran.
BTC dropped nearly 2% in hours, losing over $2,000 from its intraday high of $108,780. It touched $106,421 before rebounding slightly to hover around $106,997, data from TradingView showed.
The price decline accompanied Trump’s urgent message on Truth Social: “Everyone should immediately evacuate Tehran!” The White House confirmed he had returned early from Canada and convened the National Security Council in the Situation Room.
“Much was accomplished,” U.S. Press Secretary Karoline Leavitt said, “but because of what’s going on in the Middle East, President Trump will be leaving tonight after dinner with Heads of State.”
Trump told reporters: “I have to be back early for obvious reasons.”
Risk-Off Sentiment Escalates Across Crypto Derivatives Market
The crypto market responded immediately, with heightened fear spreading across derivatives. According to options market data, the 25 Delta Skew — a measure of sentiment — flipped sharply into positive territory.
The 1-week skew jumped from -2.6% to +10.1%, while the 1-month flipped from -2.2% to +4.9%. These levels mirrored those seen before the recent “Liberation Day” volatility. The rise in skew suggests that traders are increasingly hedging or speculating on downside risk.
Altcoins posted deeper losses. Ethereum (ETH) dropped almost 4.8% in hours to $2,586. Other major altcoins recorded losses between 5% and 6%.
According to CoinGlass, total crypto liquidations reached $400 million, with broader capitalization shedding around $80 billion.
Embassies Urge Citizens to Leave Amid Middle East Escalation
Tensions escalated further as foreign governments issued evacuation advisories.
China’s embassy in Israel warned its citizens to leave via land crossings. “The Israeli-Iranian conflict continues to escalate, with civilian facilities damaged,” the embassy posted on WeChat.
The Russian embassy echoed the concern. Ambassador Anatoly Viktorov urged all Russian citizens to exit Israel, citing growing instability.
While no direct military actions had been confirmed, the diplomatic signals fueled wider risk aversion in global markets. Gold prices dropped 0.5%, and oil remained steady, up just 0.5% — suggesting investors still anticipate a diplomatic resolution despite heightened rhetoric.
However, the flight from crypto shows traders are bracing for worse.
Golden Cross Flash Fails to Offset Geopolitical Panic
Despite a bullish technical setup, broader sentiment overwhelmed market structure.
Crypto trader Merlijn noted a rare golden cross formed on Bitcoin’s Bull Market Support Band, a historical indicator of upward momentum. “Last time this signal hit, BTC pumped 63%,” Merlijn wrote. But this time, buyers hesitated.
“Golden Crosses don’t flash often. Miss this one… and you’ll be chasing candles,” he added.
Yet macro pressures overpowered chart signals. The geopolitical risk, combined with elevated liquidations and options hedging, limited any bullish response.
Trump’s Truth Social Eyes Bitcoin and Ethereum ETF
Amid the chaos, a surprising development emerged. Trump’s social media platform, Truth Social, reportedly filed for a Bitcoin and Ethereum ETF.
The filing, revealed by AJ Huber, adds a new angle to Trump’s growing alignment with crypto. If confirmed, the move could mark an attempt to solidify crypto support among his voter base ahead of the election.
Still, the announcement failed to prop up prices. BTC’s slide and ETH’s sharper drop underscore a market more focused on global security risks than long-term fundamentals.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
