Bitcoin Slides as Trump’s Middle East Warning Rattles Markets

Bitcoin Slides as Trump’s Middle East Warning Rattles Markets

Tensions in the Middle East have once again shown how global unrest can shake financial markets. The ongoing conflict between Israel and Iran has sent Bitcoin and the broader cryptocurrency market into a decline. Over the past 24 hours, the total global crypto market value has dropped by more than 3% according to data from CoinGecko.

In Brief

  • Global crypto market fell over 3% in 24 hours amid rising geopolitical tensions.
  • President Donald Trump’s early G7 exit and warning on Tehran added to investor anxiety.
  • Michael van de Poppe said the dip may be due to a typical pre-FOMC risk-off move, not just geopolitics.

Trump’s Actions Trigger Market Reaction

US President Donald Trump’s early exit from a world leaders’ meeting and his Truth Social post stirred concern among traders.

He had travelled to Canada for the G7 summit but left ahead of schedule. The reason, he said, was the rising tensions between Israel and Iran.

Fox News reported that Trump asked the National Security Council to ready the White House’s Situation Room. Not long after, he posted on Truth Social, urging people in Tehran to evacuate immediately. The message added to market concerns.

The White House later confirmed his early departure. Press Secretary Karoline Leavitt said Trump arrived on Sunday and held meetings but left after Monday’s dinner due to the crisis.

Bitcoin Drops but Holds Key Level

Trump’s sudden exit and warning caused a dip in Bitcoin’s price. Before the news broke on Monday, Bitcoin had climbed to an intraday high of $108,780. But following the developments, the price started to fall.

Despite the recent dip, Bitcoin has managed to stay above the $100,000 mark since early May. Crypto analyst Anndy Lian suggested that Bitcoin’s recent steadiness signals growing maturity. He noted that its ability to stay above $100,000, even during political tensions, reflects increasing investor confidence.

Lian pointed to strong institutional investment, with the iShares Bitcoin Trust bringing in about $12 billion this year. He added that Bitcoin’s recent drop reflects market fears sparked by geopolitical tensions, but its ability to hold steady suggests it is becoming more than just a risky asset.

Still, not everyone believes the market drop is directly tied to the Middle East. Analyst Michael Van de Poppe shared a different view. He posted on his X page that Bitcoin was already starting to weaken before the recent headlines.

He noted that a drop below $105,000 could trigger liquidations, likely leading to a deeper decline. While some blame global tensions, van de Poppe sees the move as a typical “risk-off” correction ahead of the upcoming US Federal Reserve meeting.

Altcoins didn’t escape the downturn either. In the last 24 hours, Ethereum has slipped more than 4%, Ripple’s XRP dropped about 4%, and Binance’s BNB lost 2%.

Other tokens like Dogecoin, Solana, and Cardano each fell over 5% within the same timeframe.

Analysts Stay Bullish Despite the Dip

Despite the dip, some analysts remain optimistic about major tokens. They see strong technical patterns forming in XRP, Ethereum and Dogecoin.

Despite the optimism, tensions in the Middle East continue to rise. Several countries, including China, have urged their citizens in Israel to leave immediately via land borders due to growing risks.

The Russian embassy echoed the same advice. Ambassador Anatoly Viktorov told local media that all Russians in Israel should leave until the fighting stops.

It remains to be seen how things will unfold in the coming days. But if the conflict continues, it could weigh heavily on global financial markets, causing Bitcoin and altcoins to drop even further.

 

Source: https://www.cointribune.com/en/bitcoin-slides-as-trumps-middle-east-warning-rattles-markets/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Liquidity crunch may loom for Bored Ape-collateralized loans as floor price slides

Liquidity crunch may loom for Bored Ape-collateralized loans as floor price slides

Not every NFT collection is facing the same issue, but due to the collection’s outsized influence it could have a significant impact on the rest of the Ethereum NFT ecosystem.

The floor price for Bored Ape Yacht Club non-fungible tokens, a leader among NFT collections, has fallen to an eight-month low, raising the risk that dozens of the NFTs used as collateral for decentralized lending service BendDAO may be forcibly sold.

That scenario could then trigger a cascade of further liquidations, said Anndy Lian, author of the new book NFT: From Zero to Hero, in an interview with Forkast.

BendDAO is a peer-to-peer platform that allows users to front NFTs as collateral for Ethereum loans for roughly 30% to 40% of the NFTs floor price — or the minimum price to purchase one of the Bored Ape Yacht Club NFTs on the open market.

Currently, 121 of the 227 Bored Apes collateralized on BendDAO — 2.27% of the entire collection — are considered to be at risk of liquidation as the collection’s floor price nears the level at which the tokens are valued on the platform.

With Bored Apes the second highest-selling NFT collection, Lian said a liquidation of this size would only put further downward pressure on the collection itself, others on the network, and even on the price of Ethereum itself. Combined with existing macro-economic pressure likely facing the crypto market this year, that could spell more grief for investors.

“That downstream issue [could] then create a really, really bad winter for everyone else next year,” he added.

Sick apes

BendDAO rates the risk level of a collateralized NFT via a so-called “health factor,” which is a ratio of the individual NFT’s value compared to the collection’s floor price. When that metric falls below 1, the token is automatically entered into a liquidity state for 48-hours to give the owner the chance to pay off the loan and interest to earn the token back or place it up for auction.

In response to the liquidation threat, BendDAO said Monday in a blog post they would be adjusting the liquidation threshold for these assets to 70% of the floor price by Sept. 20 over four stages with the first adjustment to 85% taking place on Aug. 30.

They also said they would be shortening the auction period to just 4 hours to improve liquidity for auctions.

“We are sorry that we underestimated how illiquid NFTs could be in a bear market when setting the initial parameters,” the BendDAO blog post read. “In the past several days, we got tons of feedback and suggestions from the community.”

The BAYC collection’s current floor price of 68.48 Eth marks a 55% plunge from a high in early May of 153 Eth, which Lian attributes to two main factors.

Merge factor

“Number one is that the overall market is not in the best condition,” he said. “Number two is there are still people with doubts on Ethereum 2.0. This adds some anxiety to people who are holding onto NFTs and using it as a collateral.”

Ethereum 2.0, usually referred to as “the Merge”, will involve the world’s second-largest blockchain mainnet transitioning from its current proof-of-work consensus mechanism to a proof-of-stake system. This change will make the network vastly more energy efficient, but will make Ether crypto miners effectively redundant, which has caused some miners to push back against the transition.

“It is actually a big concern for a lot of NFT speculators because the chances of them selling their NFT or BAYC at a certain high price is not going to come anytime soon,” Lian said of the sluggish sales figures.  “This is worrying.”

 

Original Source: https://forkast.news/liquidity-crunch-bored-ape-loan-floor-price/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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