Trump's "Stone Age" rhetoric leads to $440 million drop in the cryptocurrency market, with Bitcoin falling below $66,000

Bitcoin's price dropped below the $66,000 mark after aggressive statements by Trump regarding Iran, reversing the gains made the day before due to more conciliatory remarks. Analysts warn that Bitcoin currently acts as a barometer of risk, with the $65,500 level being a critical support level, and breaking it could trigger a chain reaction of liquidations.

Market volatility and liquidations

For the second day in a row, President Donald Trump's changing rhetoric about the U.S.-Iran conflict served as the main market catalyst, this time wiping out Bitcoin's gains and pushing the asset below the $66,000 threshold. While his comment 24 hours earlier sparked a bullish surge that surpassed $69,000, his more aggressive stance on Wednesday effectively dampened hopes for a swift diplomatic resolution, triggering a sharp reversal in investor sentiment.

According to market data, Bitcoin briefly dropped to $65,696 after Trump's threat to return Iran to the "Stone Age," highlighting how the leading cryptocurrency lost the stability it had shown right after the war began. Although there was a brief recovery above $67,000, the momentum weakened, and by 14:20 Eastern Standard Time, Bitcoin was trading around $66,800.

This drop reduced Bitcoin's market capitalization from $1.37 trillion to $1.33 trillion, which brought the total cryptocurrency market capitalization down to $2.38 trillion. This decline triggered leveraged position liquidations totaling around $48 million over 12 hours and $103 million over 24 hours. In total, cryptocurrency liquidations exceeded $440 million, with $274 million attributed to long positions.

Geopolitical deadlock

While Trump indicated that the U.S. might soon cease military operations, both critics and supporters warn that declaring victory without opening the Strait of Hormuz would seriously damage America's authority. Reports that Iran is now charging transit fees in Chinese yuan or cryptocurrency are seen as a direct challenge to the global dominance of the U.S. dollar. Analysts warn that if this practice becomes entrenched and becomes the new norm, it would be a strategic defeat for Washington, undermining decades of financial hegemony.

Compounding the problem, NATO allies have refused to join the conflict, leaving the U.S. increasingly isolated. Observers argue that this combination of economic pressure and diplomatic resistance explains why the president's statements are becoming more unpredictable.

Bitcoin market outlook

As the fog of war thickens, some analysts view Bitcoin as a "residual indicator of risk absorption." Despite the price drop, the technical outlook remains in a stalemate. Liquidity is still mostly concentrated in the range from $69,000 to $70,100, but the lack of confidence from demand has limited recent rallies to $68,000. The $65,500 level serves as a critical structural test. Analysts believe that if there are further energy shocks or military conflict escalation, breaking this level could trigger a massive chain reaction of forced liquidations.

See also: "U.S. Treasury Department Starts Implementing the GENIUS Act"

#Trump #Crypto Market

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