The past week has seen a significant decline in altcoins amid global geopolitical tensions and inflation concerns. Traders are moving to safer assets like Bitcoin.
Traders Dump Altcoins
Altcoins such as Solana (SOL), Cardano (ADA), and XRP fell over 1% in the last 24 hours, while Ether (ETH) dropped 0.7%, erasing its weekly gains. Dogecoin was flat but down 10% for the week after giving up gains from June. This overall move out of altcoins was prompted by war fears and economic signals.
Bitcoin ETFs See $389 Million Inflows
While major crypto assets declined, Bitcoin ETFs in the U.S. recorded inflows of $389 million on Wednesday alone, according to ETF data. Spot Ether ETFs attracted $19 million. This indicates that investors are viewing Bitcoin as the safer bet for now.
Escalating Tensions and Fed Comments
Geopolitical pressures intensified after reports emerged that the U.S. is considering direct strikes on Iran. This spooked markets across the board. Oil prices rose, equity futures fell, and crypto markets entered a phase of increased volatility. Fed Chair Jerome Powell's comments about persistent inflation and the need for more evidence to ease monetary policy also negatively impacted investor sentiment.
The decline in major altcoins is a clear indication of risk aversion. With escalating tensions regarding Iran and tough inflation rhetoric from the Fed, investors are seeking refuge in Bitcoin ETFs and stablecoins. Altcoins are typically the most vulnerable during turbulent times and are bearing the brunt of this market anxiety.
