The cryptocurrency market suffered a violent shakeout on May 18, 2026, as escalating geopolitical tensions sent Bitcoin and major altcoins tumbling. Over $660 million was liquidated within 24 hours, with a staggering $610 million of that occurring in just two hours after former U.S. President Donald Trump issued a stark warning to Iran.
Bitcoin, which had been struggling to hold above $82,000 following a rejection late last week, plunged to a fresh multi-week low of $76,650 on Bitstamp. The sell-off was triggered by Trump’s post on Truth Social, where he declared that Iran’s “clock is ticking” and urged them to “get moving, FAST, or there won’t be anything left of them.” He added that “TIME IS OF THE ESSENCE,” hours after reports emerged of a meeting with Israeli Prime Minister Benjamin Netanyahu to discuss war developments. The statement signaled a potential U.S. military strike, pushing traders into risk-off mode.
The mass liquidation event overwhelmingly hit leveraged long traders. According to Coinglass data, long positions accounted for $584 million of the total $657 million in forced closures. Ethereum (ETH) bore the largest single toll, with $256 million in long liquidations, while Bitcoin (BTC) followed at $180 million. The largest individual liquidation was an ETH/USDT perpetual contract on Bitget worth $28.49 million. Solana (SOL) also fell sharply, down 11.22% on the week to $84.94.
The crash came despite positive trade deal signals between the U.S. and China. Following Trump’s visit to Beijing, the White House announced concessions including China’s agreement to buy 200 Boeing aircraft and at least $17 billion per year in U.S. agricultural products through 2028. However, the news failed to buoy risk assets. Earlier, Bitcoin had enjoyed nine straight days of spot ETF inflows totaling $2.12 billion, which had encouraged speculative leveraged longs to chase the momentum—only to get wrecked when the trend abruptly reversed.
With near-term support now at $75,000–$77,000, market participants are watching for further volatility ahead of a potential Situation Room meeting Trump is expected to hold on Tuesday to review military options. The total crypto market cap slipped 0.93% to around $2.65 trillion, underscoring the fragility of the rally built on leveraged euphoria.