Following Trump's statement that the ceasefire with Iran is "over," Bitcoin and various altcoins experienced significant declines as tensions escalated.
By Oliver Knight, Omkar Godbole|Edited by Sheldon Reback Jul 8, 2026, 10:37 a.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Bitcoin price (CoinDesk data)SummaryShow- Bitcoin and ether experienced declines exceeding 2% after President Trump stated that the ceasefire with Iran is "over" and described negotiations with Iran as a "waste of time."
- His remarks followed U.S. airstrikes on Iranian boats in the Strait of Hormuz and Iranian retaliatory attacks on Bahrain and Kuwait.
- Altcoins were particularly hard hit, with approximately $350 million of the $450 million in total liquidations coming from altcoin pairs, while tokens like JUP, ETHFI, and PUMP saw losses between 5.5% and 9.3%. Solana's gains from July were completely erased.
On Wednesday, the cryptocurrency markets took a downturn after renewed airstrikes in Iran created a risk-averse atmosphere among investors. The CoinDesk 20 Index fell by 2.9% since midnight UTC, with nearly all tokens declining in value.
During a NATO leaders' meeting, President Trump declared the ceasefire with Iran "over" and stated that negotiations are a "waste of time," although reports indicate that discussions are still ongoing.
The U.S. Central Command reported that it targeted over 60 Islamic Revolutionary Guard Corps small boats to safeguard international shipping, prompting Iran to retaliate with attacks on Kuwait and Bahrain.
The Dollar Index (DXY) increased as the renewed tensions are expected to raise inflation concerns. Bitcoin BTC$62,135.06 and ether (ETH), the largest cryptocurrencies, both fell by over 2%.
The altcoin sector faced steeper losses, with JUP, ETHFI, and PUMP each losing more than 5%.
U.S. stocks were also affected, as Nasdaq 100 index futures and S&P 500 index futures dropped by as much as 1.5%.
Derivatives Positioning
- Despite Bitcoin's decline to $62,000, it remains up 6% for the month, with some positive news on the derivatives side: traders do not appear to be shorting this rally. Open interest (OI) in futures has decreased to 730K BTC from over 740K BTC the previous day.
- Ether's situation is less favorable, as its open interest has remained steady at around 13.95 million tokens, despite spot-price drops triggering liquidations worth $90 million. Bitcoin's 24-hour liquidations exceeded $100 million.
- The sell-off of Canton Network's CC token has intensified, with the token's price dropping to its lowest since January, coinciding with a rise in futures open interest to a two-week high. This suggests traders may be shorting the downturn, especially since funding rates are significantly negative, nearing -20%.
- Overall, the bearish trend has tightened across major cryptocurrencies, including BTC and ETH, as shown by their negative 24-hour OI-adjusted cumulative volume delta. A negative figure indicates that price movements are primarily driven by traders executing market orders rather than using passive limit orders.
- The recent downturn in BTC and ETH seems to have increased demand for hedging through options, as their respective 30-day implied volatility indexes, BVIV and EVIV, have risen for the second consecutive day.
- Options skew on Deribit confirms this trend. The one-week skew has surged to nearly 20% favoring puts, up from 16% a day earlier. Puts provide protection against declines in the underlying asset's price, applicable to both BTC and ether.
- However, the 24-hour volume data indicates the highest activity in BTC call options at the $80,000 strike price.
Token Talk
- The altcoin market is struggling, with $350 million of the $450 million in liquidations attributed to altcoin trading pairs, as reported by CoinGlass.
- Solana (SOL) has completely reversed its rally that began on July 2, now trading at $77 after reaching $84 on Monday.
- In contrast, the DeFi token MORPHO has bucked the trend, rising 4% since midnight as total value locked (TVL) on the protocol reached a record high of 4 million ETH this week, according to DefiLlama.
- A glimmer of hope for the altcoin market is that several tokens have entered "oversold" territory, with the average relative strength index (RSI) dipping to 40/100 from 47/100 on Tuesday.
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Stablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B.
By CoinDesk Research21 hours agoStablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B.
Why it matters:
Stablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B.
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