Billions Flows into Cryptocurrencies as Gold Retreats
Once again, U.S. President Donald Trump led global markets on Monday with a warning that a major wave of losses in the Iran crisis has not yet arrived.
However, instead of triggering a flight to traditional safe havens, markets experienced one of the most intense asset shifts recently: precious metals plummeted while cryptocurrencies surged rapidly.
Markets Against Safe-Haven Traditions: From Gold to Bitcoin
In an interview, Trump described ongoing U.S. military operations as "very strong" and indicated that a larger phase of the operation is on the horizon.
Within just 60 minutes, approximately $1.1 trillion in market value was wiped out in gold and silver. Spot gold fell by 2.05%, losing nearly #Bitcoin’sSafeHavenAppeal per ounce, resulting in a loss estimated at $120 billion.
The losses were deeper in silver. In less than two hours, the price dropped by 7%, wiping out $100 billion, with prices approaching $750 per ounce.
Meanwhile, capital quickly shifted into digital assets. Bitcoin surged above $68,000, up 5% in about 50 minutes, adding around $370 billion to its market value. Conversely, Ethereum regained the $2000 level, contributing a billion $88 with a 5.8% increase.
The cryptocurrency market added a billion $60 over the past 45 minutes, while approximately $23 million short positions were liquidated.
This divergence surprises many investors, who are accustomed to gold performing well during periods of geopolitical tension.
However, while metals experienced sharp sell-offs, cryptocurrencies absorbed the main shock and rose quickly.
Bitcoin Faces Geopolitical Shock: Derivatives Show Limited Leverage Increase
Initially, cryptocurrency liquidations worth about $100 million were reported. However, derivatives market data showed a more resilient structure amid volatility.
The funding rate was in the sixth percentile, indicating that the speculative bubble remains limited. The open interest volume decreased by only about $80 billion, meaning most traders who used leverage before the geopolitical escalation exited the system.
Last year, price movements were more volatile during similar tensions in the Middle East. This time, Bitcoin experienced a limited and temporary dip, with no sharp downward pressure.
The absence of widespread chain liquidations may indicate that the market is already prepared for geopolitical risks.
Meanwhile, the trend reversal in metals raises questions about positioning dynamics and liquidity. Rapid unwinding of futures positions in gold and silver could increase volatility when large-volume trades are reversed.
Losses exceeding a trillion $300 in one hour clearly demonstrate how fragile investor sentiment can be when suddenly shifted.
With Trump signaling a larger phase in military operations, volatility is unlikely to decrease anytime soon. The next wave of news raises the question of whether cryptocurrencies will be able to maintain this resilience or if traditional safe havens will regain their status.