Crypto market cap drops to $2.84T after Strait of Hormuz standoff
CIE News ·
Cryptocurrency markets retreated as Bitcoin fell toward $82,800 following the rejection of an Iranian diplomatic proposal, which drove oil prices and Treasury yields higher.
Global cryptocurrency markets retreated on September 28 into early September 29, with total market capitalization declining between 1.7% and 2% to reach $2.84 trillion to $2.9 trillion. Bitcoin (BTC) dropped 2.3% to trade between $82,568 and $82,800, Ether (ETH) fell 1.9% to $2,650, and Solana (SOL) shed 3.9%. According to KuCoin, QCP reported that Bitcoin pulled back from $84,500 to $82,800 as global risk assets faced selling pressure.
The decline followed U.S. President Donald Trump's official rejection of Iran's diplomatic proposal regarding the Strait of Hormuz. CoinMarketCap reported that this rejection propelled energy prices higher, with WTI crude oil surpassing $93 per barrel, while the U.S. 10-year Treasury yield climbed above 5.15% to 5.20%. These shifting macro conditions reduced overall market liquidity and weighed heavily on leveraged crypto derivatives.
According to CoinMarketCap, 24-hour trading volume rose nearly 60% alongside a more than 20% increase in derivatives open interest from recent lows. The combination of falling token valuations and elevated activity pointed to a leverage shakeout across the crypto sector. Altcoins experienced heightened volatility during the move, with Sei (SEI) dropping 12% amid broader market deleveraging.