This week, the crypto market faced various barriers, including Israel's strike on Iran and the release of CPI data in the U.S., leading to sharp price fluctuations.
Israel’s Strike on Iran Crashes Crypto Markets
Israel's military operation against Iran had a significant impact on global markets, including cryptocurrency. This led to a sharp drop in prices, with Bitcoin (BTC) hitting lows of $103K and Ethereum (ETH) losing over 11% to $2,472. Heightened geopolitical risks resulted in over $1.16 billion in liquidations as investors sought to de-risk amid concerns of further escalation in the Middle East.
Institutional Buying: Bitcoin, ETH, and XRP on the Rise
Despite market volatility, institutional buyers continued to actively invest in cryptocurrencies. For instance, MicroStrategy purchased an additional 1,045 BTC, boosting its total holdings to 582,000 BTC. Japanese companies ANAP, Gumi, and Remixpoint also expanded their crypto positions, with Remixpoint investing ¥887 million in Bitcoin. Additionally, Nasdaq-listed Trident Digital announced a $500 million XRP reserve plan, signaling confidence in Ripple’s ecosystem.
GENIUS Act (Stablecoin Bill) Moves Forward
The GENIUS Act, a regulatory framework for stablecoins, made significant strides this week through legislative channels. The bill aims to provide stability for stablecoin issuers and enhance consumer protection, positively affecting market sentiment. Investors view stablecoins as a crucial bridge between traditional finance and cryptocurrencies.
The crypto market continues to face pressure from geopolitical events while institutional purchases indicate increasing interest in digital assets. Future developments will be critical for its evolution.
