Trump's hardline Iran warning jolts risk assets; bitcoin slips under $77,000
BlockBeats reports that on May 18, risk assets broadly weakened after U.S. President Donald Trump delivered hardline remarks aimed at Iran, saying it "is running out of time" and "should act quickly, or else it will have nothing." Brent crude briefly jumped above $112 a barrel.
Bitcoin fell about 2.4% to $76,500, its lowest level since April 30. Ether slid roughly 3.5% to $2,116, nearly wiping out gains since April.
U.S. equity futures also softened, with S&P 500 futures down 0.3% and Nasdaq 100 futures off 0.25%.
Derivatives data pointed to deleveraging rather than fresh directional positioning. Total notional volume across contracts surged 65% over the past 24 hours to $159 billion, while open interest (OI) slipped 1.48% to $125 billion. Liquidations jumped 500% to $677 million.
Altcoins lagged majors, with BCH down 10% and DOGE down 4.5%. The CoinDesk Meme Index fell 2.2%, among the worst-performing segments.
BCH showed signs of a "crowded short." Open interest rose 13% to 1.47 million contracts, while the perpetual funding rate sank to an annualized 72%, the most negative among major tokens, signaling aggressive short positioning. A shift in sentiment could set up a sharp short squeeze.
ZEC held up better. Open interest climbed for a third straight day to above 2 million contracts, its 24-hour net buying volume ranked near the top among major cryptocurrencies, and funding stayed around 4%, well below overheated levels. ZEC is up 111% this quarter, and traders see further upside if broader conditions stabilize.
Open interest also increased in tokens including HYPE, CRO, and TON. Aside from ZEC, TON, and HYPE, most of the top 25 tokens posted negative cumulative volume deltas (CVD), suggesting selling pressure remains dominant.
On volatility, bitcoin's 30-day implied volatility gauge BVIV has risen to 42% from 40% since May 9. The U.S. Treasury volatility index MOVE surged 14% last Friday, its biggest one-day jump since March 26, as investors worry that rising global financial stress could amplify risk-off sentiment in crypto.
