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▲ Bitcoin (BTC), Nasdaq ©
As geopolitical tensions in the Middle East escalated and international oil prices surged, the virtual asset market faced strong downward pressure, causing its total market capitalization to plummet to $2.64 trillion. News of the breakdown in negotiations between the U.S. and Iran spread risk aversion, leading to large-scale leveraged liquidations and pushing investor anxiety to an extreme.
According to investment media FXLeaders on April 28 (local time), a widespread sell-off across the virtual asset market on Tuesday caused the total market capitalization to drop by 1.3%. Bitcoin (BTC), the leading cryptocurrency, sharply fell from its Monday high of $78,225 to the $76,480 level before finding tenuous support near $76,900. Ethereum (ETH), the leading altcoin, also dropped by about 1% to remain around the $2,300 level.
Major altcoins such as XRP (Ripple), BNB, Solana (SOL), and Tron (TRX) also recorded declines between 1% and 2%, with particularly large drops seen in assets that had surged last week, including HyperLiquid, MemeCore, and Zcash. Forced liquidations totaling $266 million occurred not only in the spot market but also in the derivatives market, with $210 million of this coming from long positions, further intensifying the downward pressure.
The primary cause of this sharp decline is the stalled peace negotiations in the Middle East. Iran proposed a compromise to open the Strait of Hormuz on the condition that the U.S. lift its naval blockade, with nuclear negotiations to be discussed later. However, the situation dramatically reversed when U.S. President Donald Trump abruptly canceled his plan to send a special envoy to Pakistan, which the market perceived as a fatal negative factor.
International oil prices reacted immediately to the news of the negotiation breakdown, with West Texas Intermediate crude threatening $99 per barrel and Brent crude surpassing $110. Soaring energy prices fueled inflation fears, which in turn led to concerns about delayed interest rate cuts, creating a domino effect of capital outflow from risk assets like virtual assets. Even traditional safe-haven assets like gold and silver fell by 1% and 2% respectively, indicating the significant market shock.
Related thematic stocks in the equity market were also directly hit. Coinbase plummeted by 1.5%, Circle by 3.5%, and Galaxy Digital by nearly 6%. With the Nasdaq index falling 0.3% initially and the S&P 500 index remaining flat, investors are holding their breath, awaiting the earnings announcements from major big tech companies such as Alphabet, Meta, Microsoft, and Apple.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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