Crypto Market Plunges Amid geopolitical Tensions
The crypto market took a hit over the weekend as geopolitical tensions escalated. President Donald Trump ordered airstrikes on IranS nuclear sites, joining Israel in the operation. The goal was to cripple Iran’s nuclear capabilities. Trump declared the mission a success, but Iran vowed to defend itself.
Consequently, Bitcoin’s price fell below $103,000. Top altcoins like Virtuals Protocol,Celestia,AB,adn Aptos also dropped by over 9%. The total market cap of all cryptocurrencies fell by 1.65% to $3.15 trillion. Liquidations surged by 38% to over $682 million.
The market crash was driven by two main factors.First, investors embraced a risk-off sentiment following the attack. Historically, risky assets like stocks and cryptocurrencies retreat after major events. For example, stocks and crypto fell after Trump launched retaliatory tariffs in April and after the COVID pandemic started in March 2020.
the Middle Eastern crisis could also lead to higher crude oil and shipping prices. Analysts anticipate rising prices, which could cause consumer inflation in the U.S. to keep rising. This will prevent the Federal Reserve from cutting interest rates.Bitcoin and altcoins do well when the Fed is cutting rates.
Hanain Malik of Tellimer said, “Short-term, markets such as crude oil, stocks, and crypto will pivot on whether Iran retaliates and widens the war in a way that impacts oil supply versus backing down and offering concessions on its nuclear program.”
The crisis in Iran may lead to higher inflation. Brent and West Texas Intermediate oil benchmarks have already jumped by over 32% from the year-to-date low. Shipping costs have also jumped. The Fed left interest rates unchanged last week but hinted at two cuts this year and four in 2026 and 2027. Bitcoin and altcoins do well when the Fed is cutting interest rates.”
- Bitcoin price dropped below $103,000.
- Top altcoins plunged by over 9%.
- The total market cap of all cryptocurrencies fell by 1.65%.
- Liquidations surged by 38% to over $682 million.
For more facts, visit CoinGecko.
