Gold and silver wipe out $2 trillion, will Bitcoin and crypto follow. Credit: CCN.
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Key Takeaways
Gold & silver crashed, wiping out ~$2T as yields spiked and safe-haven failed.
Bitcoin dropped sharply on weekend after Trump’s threat to Iran’s power plant.
Despite war fears, BTC outperforms gold, gaining while metals plunge hard.
Gold and Silver saw one of their worst flash crashes on Monday market opening, wiping out more than $2 trillion in market value within hours.
The current market crisis is being attributed to the ongoing geopolitical tensions between Iran, the United States, and Israel that have created turbulent times in all markets.
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Gold and Silver prices crashed nearly 10% on Monday as the price of precious metals officially entered bear markets after falling more than 22% from their all-time high.
Gold, often seen as the ultimate safe-haven asset during global storms, has joined equities in a rapid reversal.
The yellow metal fell by 5-7% in recent sessions, with some sources indicating weekly losses of around 10%, the biggest since 2011.
Silver performed much worse, falling more than 14% for the week and momentarily collapsing below crucial support levels of $69-$80 per ounce.
Silver price crash. Credit: TradingView.
The price crash was attributed to several factors, including profit-taking, institutional liquidation, and a stronger US dollar, which together led to a $2 trillion loss in total market capitalization for the two metals over just a few days.
Analysts attributed higher treasury yields as the key cause. Higher yields raise the opportunity cost of holding non-yielding commodities such as gold and silver, prompting margin calls and forced selling, even as oil prices rose amid concerns about disruptions to the Strait of Hormuz.
Despite the ongoing U.S.-Israel conflict with Iran, gold failed to rally as expected. Instead of flying higher on war premiums, it moved in lockstep with risk assets, mimicking equity more than its traditional role as a hedging asset.
Bitcoin Nursing Weekend Wounds
While precious metals bled on Monday’s open, cryptocurrency investors were already nursing wounds from the weekend.
Bitcoin suffered a sharp drop after President Donald Trump issued an ultimatum to Iran on Saturday evening. In a Truth Social post, Trump gave Tehran 48 hours to fully reopen the Strait of Hormuz or face U.S. strikes on its power plants.
The warning sent shockwaves through the risk markets. Bitcoin fell from a weekly high of $75,912 to as low as $68,241 in hours, wiping out roughly 10% and a full week’s gains.
Over $299 million in cryptocurrency holdings were liquidated in 24 hours, with longs bearing the brunt of the losses. Ethereum and altcoins followed, exacerbating the broader risk-off sentiment driven by concerns of further violence in the Middle East.
The weekend slump occurred just as traders were pricing in a likely de-escalation. Trump’s power-plant warning, given amid Iran’s threats to close the Strait of Hormuz and target Gulf infrastructure, shifted investor sentiments overnight.
Bitcoin Outperformed Equities and Gold Before Sunday Bloodbath
For most of the past 6 months, Bitcoin has struggled to remain above $70,000 and underperformed gold, but the narrative has changed since the start of the Iran conflict. Bitcoin has actually outperformed gold during the current Iran conflict.
Since strikes intensified in late February 2026, Bitcoin has posted gains of around 7–12% in key periods while gold has fallen 2–10%.
Institutional ETF inflows into Bitcoin topped $1.1 billion in recent sessions, and its round-the-clock trading has enabled a quicker recovery than in traditional markets. Some analysts now call it “digital gold 2.0” for this crisis, as it absorbs risk-off flows better than the yellow metal.
One of the more intriguing conspiracy theories circulating in crypto communities during the ongoing Iran conflict is that Iran’s state-sponsored Bitcoin mining operations have been secretly fueling Bitcoin’s price increases, particularly the notable rebounds and gains seen since late February 2026.
According to reports, Iran can generate a single Bitcoin for roughly $1,300 and then sell it on worldwide markets for prices that regularly exceed $70,000, resulting in significant profits.
Rising oil prices, potential supply shocks, and higher-for-longer rates could keep pressure on risk assets. Yet Bitcoin’s structural advantages, such as ETF adoption, 24/7 liquidity, and decoupling from traditional safe havens, suggest it may not mirror gold’s full downside.
However, many dismiss this theory as Iran’s share of global Bitcoin hashrate is now in the low single digits, down from higher historical levels.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
