Over the weekend, cryptocurrency markets experienced a significant drop triggered by geopolitical tensions in the Persian Gulf and U.S. actions against Iran. Bitcoin fell below the $100,000 mark for the first time since early May but is showing signs of recovery.
Crypto Market Dip
Cryptocurrency markets lost about 4% of their total capitalization, dropping to $3.15 trillion amid escalating conflicts in the Middle East. Bitcoin briefly dipped to $98,500, marking its first drop below $100,000 since May 8. However, by the time this article was prepared, Bitcoin had recovered to $101,000. Ethereum also fell more than 7%, dropping to $2,135, but has since rebounded to $2,240.
Economic Events This Week
This week, key economic reports are expected, starting with preliminary PMI data for manufacturing and services on Monday. On Tuesday, home sales data and consumer confidence reports will be released, along with Federal Reserve Chair Jerome Powell's testimony before Congress. Further GDP data for Q1 will be available on Thursday, with the Personal Consumption Expenditures report on Friday being the key highlight as it tracks inflation changes.
Crypto Market Outlook
Given the heightened volatility driven by geopolitical events and economic reports, short-term predictions for cryptocurrencies remain uncertain. The latter half of the week promises to be busy for both traditional and digital assets, which could result in further price fluctuations.
Geopolitical events and economic data remain the primary drivers of cryptocurrency market volatility. Investors should monitor both financial and cryptocurrency markets closely.
