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Crypto Market Cap Surges by $100 Billion After Gold Crash Triggered by Trump’s Statements
U.S. President Donald Trump triggered sharp swings in global markets. The politician warned of an approaching new phase in the Middle Eastern conflict.
Instead of shifting into traditional safe-haven assets, investors chose a different path. Precious metals declined sharply, while digital assets moved into strong growth.
Markets Abandoned Defensive Strategy as Capital Flowed into Bitcoin
In an interview with CNN, Trump described the current U.S. military strikes as “very powerful.” At the same time, he hinted at the inevitability of a large-scale operation in the future. In less than 60 minutes, gold and silver collectively lost about $1.1 trillion in market value. Spot gold fell 2.05%, dropping nearly $100 per ounce and wiping out roughly $750 billion in valuation.
Silver experienced an even sharper reversal, plunging 7% in less than two hours. The asset fell to $88 per ounce, equivalent to a loss of approximately $370 billion.
Bitcoin and Ethereum price dynamics. Source: TradingView
Against this backdrop, capital aggressively flowed into the crypto industry. Bitcoin surpassed $69,000, gaining 5% in about 50 minutes. Ether returned to the $2,000 level, rising 5.8% and adding another $23 billion to the industry’s total valuation.
“The cryptocurrency market cap increased by $100 billion in the last 45 minutes, with nearly $80 million in short positions liquidated,” one analyst noted.
This price action caught many market participants off guard. Historically, conservative instruments have outperformed during periods of geopolitical tension. However, this time metals faced heavy selling pressure, while the crypto market absorbed the news shock and accelerated upward.
Derivatives Indicate Low Leverage Levels
Initial media headlines triggered forced liquidation of crypto positions worth approximately $300 million. At the same time, derivatives market data suggest a resilient internal structure amid volatility.
Funding rates were at the 6th percentile, indicating a lack of excessive speculation. Open interest declined by only $1 billion. This suggests traders had already reduced most of their leverage before the escalation.
Last year, similar Middle Eastern conflicts led to more chaotic price movements. This time, Bitcoin dipped only briefly before quickly stabilizing. The absence of cascading liquidations may indicate that geopolitical risks were already priced in.
Meanwhile, the sharp reversal in precious metals charts raises questions about positioning and liquidity. Rapid unwinding of futures contracts can significantly amplify price swings when trading becomes crowded.
A decline exceeding $1 trillion in just one hour highlights the fragility of market sentiment. Since Trump warned of possible escalation, price volatility is unlikely to disappear soon. The next wave of news will determine whether digital assets retain their appeal or whether capital flows back into traditional stores of value.
See also: "Bitcoin Stabilizes at $68K as Trump Backs Crypto"
