The cryptomarkt is in red today, with worldwide market capitalization with 4.32% to $ 3.25 trillion. Most cryptocurrencies, including Bitcoin, Ethereum, XRP and Solana, see sharp losses. Bitcoin acts under $ 104,000 at the time of writing. There is support near $ 101,000 to $ 102,000.
Ethereum (ETH) has fallen more than 9% in the last 24 hours and drops to around $ 2,501. XRP has also taken a hit and slides with more than 5% to act at $ 2.11. Popular altcoins such as Solana (SOL) and Dogecoin (Doge) have not been spared either – Sol has fallen more than 10%, while Doge has fallen by almost 9%. Even large CAP tokens such as BNB and Cardano (ADA) have lost grounds, 2.89% and 8.6% respectively.
Geopolitical tensions shaking markets
The biggest reason for today’s sale is a sudden escalation in tensions in the Middle East. Israel reportedly launched an air raid on Iran’s nuclear facilities on 13 June and this geopolitical shock made global investors, which made them stood to safer assets as gold, which jumped with 5%.
Historically, when there is unrest in the middle, there are risky assets such as cryptocurrencies tend to fall. Bitcoin alone fell by almost 4% Intraday, a movement that is comparable to what happened during the US IRAN conflict in 2020.
Macro and regulatory pressure
The US finance minister Janet Yellen recently warned that Donald Trump’s proposed rates could push American inflation to 3%. This can cause the Federal Reserve to keep interest rates higher – bad news for risk assets such as crypto.
The recent launch of Coinbase of CFTC-in-conforming futures contracts has removed the short-term liquidity from spot markets, which contributes to the downward pressure.
The next major event for the markets is the upcoming interest decision, which is due within a few days. At the moment, a 99% chance rate remains the same. The hope of the market of the Jerome Powell market will sound more confident about future economic stability, which later hints on tariff reductions. If not, and if the Fed sticks to his “wait -and -see” attitude, markets can remain weak for the time being.