Multiple incentives wipe out trillions of dollars in global assets

Today, we witnessed a rare event that happens only once a decade, as multiple markets collapsed within one hour. The catalysts are intertwined and complex: from the geopolitical escalation between the United States and Iran to excessive leverage in precious metals markets. The result? Massive losses on a historic scale.

Massive Losses Across Multiple Markets

Immediately after the U.S. markets opened, a downward wave began. Gold dropped by 8%, wiping out $3.1 trillion in market value. Silver fell even deeper by 12%, carrying away $700 billion. The S&P 500 index declined by 1.3%, erasing $800 billion from American companies’ market capitalization.

Cryptocurrency markets were not spared from the wave, losing $110 billion in value. When all these losses are combined, we reach more than $5 trillion wiped out in just one hour—equivalent to the combined GDP of Russia and Canada.

Geopolitical Escalation and Leverage: The Real Triggers

But what triggered this collapse? The catalysts are multiple and vary by market. For gold and silver, leverage was the primary trigger—retail traders were at their peak activity and couldn’t withstand the strong downward wave.

In stock and cryptocurrency markets, the geopolitical trigger was decisive. The U.S. aircraft carrier USS Abraham Lincoln entered a state of alert, possibly indicating military preparations against Iran. This news alone was enough to ignite a massive sell-off across safe-haven and risk markets.

Overall, today will remain a significant reference point in financial market records, sparking discussions about the power of leverage and the immediate impact of geopolitical events on global market movements.