President Trump issued a 48-hour ultimatum on Truth Social Saturday, threatening to 'obliterate' all Iranian power plants if Iran did not reopen the Strait of Hormuz. Bitcoin plunged from above $69,000 to a low of $67,200, currently trading around $67,910. Ethereum dropped from $2,120 to $2,020, now at $2,056. This marks the second major liquidation wave this month after a $458 million wipeout on March 19 that affected 128,000 traders. This time, 172,479 traders were liquidated in 24 hours.
$335 Million in Liquidations, 72% Longs
CoinGlass data shows total liquidations of $335 million across all exchanges in the past 24 hours. Long positions accounted for $241 million (72%), while shorts liquidated $93.15 million. The largest single liquidation was a $5.83 million ETH-USDT contract on HTX. Traditional safe havens also suffered: gold (XAU) saw $2.95 million in liquidations and silver (XAG) $2.01 million.
Geopolitical Risk Intensifies, Inflation Expectations Rise
Trump's threat came less than 24 hours after he hinted at de-escalation, catching markets off guard. The US-Iran conflict has escalated since early this month, driving oil prices higher and fueling inflation concerns. The Fed kept rates at 3.5%-3.75% last week but raised its 2025 inflation forecast from 2.4% to 2.7%, with Chair Powell acknowledging oil price increases. Bitcoin's 'digital gold' narrative is being tested as energy costs squeeze miners — an estimated 8-10% of global mining capacity is in energy-sensitive regions.
Altcoins in the Red: SOL, XRP Drop
Major altcoins followed Bitcoin lower: Solana (SOL) traded around $87, down 3.15% in 24 hours; XRP slipped to $1.43. The total crypto market cap remains under pressure, extending March's weak trend without a new catalyst.
Fear & Greed Index at 10, Stock Market Also Down
The Fear & Greed Index hit 10 (extreme fear) and has been in extreme fear territory for 46 consecutive days — the longest streak since late 2022. Historically, when the index is below 25, buying Bitcoin yields a median 90-day return of +38.4%. However, during the 2022 bear market the index stayed below 20 for 73 days while Bitcoin dropped another 40%, showing extreme fear does not guarantee a bottom. US stocks closed lower Friday: S&P 500 fell 1.51% to 6,506, Nasdaq dropped 2.01% to 21,647, and the Dow lost 0.96%.
The 48-hour deadline expires Monday. Markets are watching Iran's response. If tensions escalate further, Bitcoin could test support near $65,800; a de-escalation could trigger a bounce toward the $70,000 psychological level.