The cryptocurrency market is currently in the red, with the global market cap decreasing by 4.32% to $3.25 trillion. Major cryptocurrencies like Bitcoin and Ethereum are experiencing sharp losses.
Overall Market Drop
Bitcoin is trading below $104,000, with support between $101,000 and $102,000. Ethereum has dropped over 9%, reaching around $2,501. XRP has also been affected, slipping more than 5% to trade at $2.11. Altcoins like Solana and Dogecoin are not spared either—SOL is down over 10%, while DOGE has fallen by nearly 9%. Even major tokens like BNB and Cardano have lost ground, dropping 2.89% and 8.6% respectively.
Geopolitical Factors
The primary reason for today’s crypto sell-off is the sudden escalation of tensions in the Middle East. Israel reportedly launched an airstrike on Iran’s nuclear facilities on June 13, which spooked global investors. They rushed toward safer assets like gold, which jumped 5%. Historically, whenever there’s unrest in the Middle East, risky assets like cryptocurrencies tend to fall. Bitcoin alone dropped by nearly 4% intraday, mirroring past declines during the U.S.-Iran conflict in 2020.
Macroeconomic and Regulatory Pressures
U.S. Treasury Secretary Janet Yellen recently warned that Donald Trump’s proposed tariffs could push U.S. inflation up to 3%. This could lead the Federal Reserve to keep interest rates higher for longer—which is bad news for risk assets like crypto. Coinbase’s recent launch of CFTC-compliant perpetual futures contracts has also pulled short-term liquidity from spot markets, adding to the downward pressure. The next major event for the markets is the upcoming interest rate decision, with a current 99% chance that rates will remain the same.
The cryptocurrency market continues to face pressure from geopolitical and macroeconomic factors. Upcoming decisions by the Federal Reserve and the escalation of global conflicts may significantly impact market trends.
