I noticed something crazy this weekend in the crypto market. Bitcoin plummeted below $74,000 right after Trump issued a 48-hour ultimatum to Iran over the Strait of Hormuz. In just a few hours, we lost all the gains from the previous week, which had pushed us up to $75,912. It’s wild how a single tweet can flip market sentiment upside down.

Liquidations were massive, over $299 million in 24 hours. Most traders who were long got rekt, especially on Bitcoin with $122 million in losses. Ether dropped from $2,114 to around $2,320, XRP lost 2.5%, Solana fell 2.1% to $83. Even Dogecoin took a hit, losing 2.7% to $0.09. The problem is, we were all too bullish after eight consecutive days of rally, so we had no protection against this kind of shock.

Now the deadline is Monday evening. If Iran doesn’t comply, we might see the first direct strikes on energy infrastructure, which would completely change the game. The Fed had adopted a dovish stance on Wednesday that should have supported risky assets, but the risk of war outweighs everything. Personally, I’m waiting to see how things develop before re-entering positions.