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Woofun AI reports that bitcoin (BTC) and ether displayed unusual stability against a backdrop of Federal Reserve policy uncertainty and escalating geopolitical conflict involving Iran, U.S. troops, and President Donald Trump. This resilience persisted even as broader markets, including the S&P 500, Nasdaq, and tech giants Microsoft (MSFT) and Meta (META), faced significant headwinds.
The Federal Reserve maintained its benchmark rate, yet three committee members voted for an increase, signaling potential future hikes that typically dampen risk asset appeal.
Woofun AI data shows that this volatility triggered $286 million in liquidations over 24 hours, with longs accounting for $186 million and shorts for $100 million, . These figures reflect intense trading activity around the Wednesday midnight UTC decision, where leveraged positions were flushed out despite the rate remaining unchanged.
Geopolitical tensions intensified hours after the FOMC decision when Iran launched ballistic missiles at U.S. troops, prompting President Donald Trump to vow to hit Iran "hard". This escalation caused Oil prices to surge, effectively erasing Monday’s declines, while U.S. equities initially fell. Despite the aggressive rhetoric and energy market spike, the immediate market reaction was tempered, with major indices recovering from their lows.
S&P 500 and Nasdaq index futures have since turned slightly positive, suggesting a cautious stabilization in global risk sentiment.
However, the outlook remains fragile as Microsoft (MSFT) and Meta (META) earnings are scheduled after the bell today. These corporate results could swing sentiment once again, determining whether the current calm is sustainable or merely a pause before further volatility.