The crypto market lost about $92 billion since early Wednesday after Iran's president addressed the UN General Assembly, with Bitcoin dropping 3.4% and nearly $400 million in leveraged positions liquidated. A separate US-Iran proposal to reopen the Strait of Hormuz within seven days remains unsigned, as oil, Treasury yields, and risk assets stay under pressure.
The crypto market has lost about $92 billion since early Wednesday, a fall of about 3.2% that leaves total market capitalization at $2.82 trillion. Bitcoin dropped about 3.4% to $83,512, briefly touching $82,900 on Thursday morning before recovering some ground.
Pezeshkian's UN Speech Sours the Mood
Iran's President Masoud Pezeshkian addressed the UN General Assembly, telling delegates: "(Iran) will never bow our head or bend at the knee". He added that Tehran remains open to talks, rejected accusations of terrorism, and said Iran had acted in self-defense while accusing the US of violence against civilians. The American delegation reportedly walked out soon after.
Traders braced for a tiff between the two countries, and markets slid. Conflict in the region raises oil prices, and costlier oil feeds inflation concerns, pushing traders away from riskier assets.
Leveraged Bets Unwind
CoinGlass data showed about $399.5 million in positions were liquidated over 24 hours, with about $297 million of that coming from longs. More than 92,000 traders got caught out in the wave of forced liquidations, and the single largest was an $11.48 million Ethereum position.
A Hormuz Proposal Adds Pressure
Separately, the US and Iran are discussing a phased arrangement that could reopen the Strait of Hormuz within roughly seven days in exchange for easing Washington's blockade of Iranian ports, according to Reuters sourcing. No deal has been signed, and markets aren't waiting around: Brent crude was hovering near $104, while the 10-year Treasury yield sat near 5.14%-5.16%, close to a 19-year high.
CME's Fedwatch tool put the odds of an October rate hike above 70%, adding another variable for markets already weighing the Hormuz talks. Until US-Iran tensions cool, prices will probably move sideways.
Sources: AMBCrypto, Bitcoin.com
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