QCP Capital: Crypto Market Sees Over $1B Sell-Offs As Traders Seek Downside Protection, Attention Turns To Tehran’s Response To Israel’s Strike
In Brief
QCP reports that Israel’s strike on Iran triggered global market turmoil, with oil prices surging, crypto falling sharply, and over $1B in liquidations.
Singapore-based digital asset firm QCP Capital has published its recent market analysis, highlighting Israel’s preemptive airstrike on Iran’s nuclear facilities, which reportedly caused the death of IRGC commander Hossein Salami, as a key event that sent shockwaves through risk assets and increased volatility in global markets. In the wake of Tehran’s vow of retaliation and Washington’s efforts to distance itself from the situation, investors sought safe-haven assets, leading to sharp rises in oil and gold prices.
Futures on the S&P 500 dropped below the 6,000 level, while cryptocurrencies also experienced declines amid the turmoil. BTC fell by approximately 3%, and ETH suffered a steeper drop of around 9%. Market volatility increased notably, especially in the short term, as traders moved quickly to acquire gamma exposure ahead of the upcoming Federal Open Market Committee (FOMC) meeting.
QCP Capital observed a clear shift in risk sentiment, with risk reversals for Bitcoin indicating a marked increase in demand for downside protection. Front-end put options for BTC were trading at premiums up to 5 volatility points higher than equivalent calls. Meanwhile, West Texas Intermediate (WTI) crude oil prices surged by as much as 11% during intraday trading, driven by concerns over a prolonged conflict between Israel and Iran. Given Iran’s crucial role in global oil supply, the firm notes, any escalation threatens to disrupt key supply routes, intensifying inflation worries and challenging the Federal Reserve’s approach to interest rates.
Current tensions have reached levels comparable to those seen in April, leaving markets uncertain and caught between anticipating either further escalation or a diplomatic resolution.
Adding to these macroeconomic pressures, US equities faced a setback due to a widespread internet outage that renewed concerns about the structural vulnerabilities of centralized web infrastructure. Disruptions at Cloudflare affected many users, and Google Cloud outages impacted major platforms such as Spotify, Snap, Discord, and even Google’s own services. These technological failures contributed to declines in technology stocks and deepened losses toward the end of the trading day.
Bitcoin Shows Resilience Amid Equity Declines And Liquidations, Investor Focus Shifts To Tehran’s Response
The decline in equities coincided with a notable increase in open interest across major cryptocurrency assets, resulting in over $1 billion in long liquidations. Despite these sell-offs, Bitcoin demonstrated relative resilience, indicating sustained institutional interest. Reflecting continued confidence in major cryptocurrencies amid a broader market deleveraging, DeFi Development Corp announced a $5 billion equity facility intended to acquire SOL for its corporate treasury.
QCP Capital emphasizes that attention remains focused on Tehran as the digital asset sector continues to be closely linked with geopolitical risks. Market movements are expected to be heavily influenced by headlines, with the interplay between conflict escalation and diplomatic efforts shaping near-term trends not only for cryptocurrencies but across the wider macroeconomic environment.
At the time of this report, Bitcoin is trading at $105,251, reflecting a decline of approximately 1.69% over the past 24 hours. During this period, its highest value reached $108,367, while the lowest recorded price was $103,053.
ETH is currently valued at $2,552, marking a decrease of about 7.09% in the same timeframe, with a peak price of $2,770 and a low of $2,454.
The total market capitalization of the global cryptocurrency market stands at $3.28 trillion, representing a 2.84% drop in the last 24 hours. Meanwhile, the overall trading volume across the crypto market has increased significantly by 33.76%, reaching $171.07 billion, based on data provided by CoinMarketCap.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
