Crypto, Stocks Tumble as Trump Declares Iran Ceasefire 'Over'

Crypto markets fell Wednesday after fresh airstrikes in Iran and a declaration from U.S. President Donald Trump that the ceasefire with Iran is "over." The CoinDesk 20 Index dropped 2.9% since midnight UTC, with all but one token declining.

Trump made the remarks addressing NATO leaders, calling negotiations with Iran a "waste of time," though talks continue, according to news reports. The U.S. Central Command said it hit more than 60 Islamic Revolutionary Guard Corps small boats to prevent disruption of international shipping. Iran retaliated with attacks on Kuwait and Bahrain.

The Dollar Index rose. Bitcoin (BTC) fell more than 2% to $62,109.52. Ether (ETH) also dropped more than 2%. Losses were steeper among smaller altcoins: JUP, ETHFI and PUMP each fell more than 5%.

U.S. equities took a hit too. Nasdaq 100 index futures and S&P 500 index futures tumbled as much as 1.5%.

Stablecoin market cap fell to $312 billion in June, its largest monthly drop since the collapse of TerraUSD. The decline suggests investors pulled liquidity from crypto amid the risk-off mood. At the same time, tokenized equity volumes surged 145% to a record $3.86 billion, according to CoinDesk data.

The stablecoin contraction and the tokenized equity jump point to a bifurcated market. One side shows fear and capital flight to fiat. The other shows growing institutional appetite for onchain representations of traditional assets, even as geopolitical risk rises.