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US President Donald Trump again rattled global markets on Monday after warning that a “big wave” was still coming in the escalating conflict with Iran.
Markets witnessed one of the sharpest reversals between assets in recent memory instead of a traditional flow into safe-haven assets: precious metals fell while cryptocurrencies rose.
Markets challenge safe haven strategy as capital moves from gold to Bitcoin
Trump said in an interview with CNN that the ongoing US military strikes are “very strong”, indicating that a larger phase of the operation is still to come. He indicated
In just 60 minutes, gold and silver wiped out about $1.1 trillion of their combined market value. Spot gold fell 2.05%, losing nearly $100 an ounce, withdrawing about $750 billion.
Silver, meanwhile, recorded a more violent reversal, falling 7% in less than two hours. It shed about $370 billion as prices neared $88 an ounce.
At the same time, capital has flowed heavily into digital assets. Bitcoin broke the $69,000 level, registering a growth of about 5% in 50 minutes, adding an estimated $60 billion to the market capitalization. Ethereum regained the $2,000 level, rising by 5.8%, adding another $23 billion.
An analyst noted that the cryptocurrency market added $100 billion in the last 45 minutes, liquidating almost $80 million in short positions.
This discrepancy surprised many observers, given that investors are used to gold outperforming during periods of geopolitical tension.
Metals instead saw strong selling pressure while cryptocurrencies absorbed the headline shock and accelerated higher.
Derivatives indicate limited leverage as Bitcoin absorbs geopolitical shock
The initial headlines caused a total liquidation of cryptocurrencies worth an estimated $300 million. However, the derived data show a more flexible structure under price fluctuations Through this report.
Financing rates were in the 6th percentile, indicating a limited speculative surplus. Open interest only fell by about $1 billion, suggesting that leverage had already been removed before the geopolitical escalation.
Tension in the Middle East last year According to this report At the most erratic price movements. This time, Bitcoin fell only for a short time, but did not fall firmly to low levels.
The absence of subsequent and violent liquidations indicates that the market was already prepared for geopolitical risks.
The reversal in the movement of metals at the same time raises questions about positions and liquidity dynamics. Rapid developments in the gold and silver futures markets amplify volatility when crowded trades change direction.
The volume of the move, with more than $1 trillion cleared in an hour, reflects how fragile trust is when expectations suddenly change.
Trump has indicated that a larger military phase could still happen later, so volatility is unlikely to abate. The next batch of titles can test the resistance of cryptocurrency, or if the traditional havens regain their strength.
