The world’s largest digital token traded near $62,000 after touching an intraday low around $61,700, extending a pullback that spread across Ether, XRP and Solana. Ether hovered near $1,625, while several large alternative tokens lost between 1 and 3 per cent as traders moved away from leveraged positions.
The sell-off followed President Donald Trump’s statement that the interim ceasefire with Iran was “over” after a fresh exchange of strikes between the two countries. The remarks, made ahead of a NATO summit in Ankara, came after Washington launched attacks on Iranian targets in response to strikes on ships near the Strait of Hormuz.
Iran said it had targeted US military sites in Bahrain and Kuwait in retaliation for strikes on its territory. US officials said the latest operations were aimed at military assets linked to threats against shipping in the Gulf. The flare-up raised fears that energy flows through one of the world’s most important maritime chokepoints could again face disruption.
Brent crude jumped more than 5 per cent to above $78 a barrel, while West Texas Intermediate climbed towards $75. The move restored a geopolitical premium that had faded after oil retreated from earlier wartime highs above $100 a barrel. Higher energy prices are a direct concern for crypto markets because they can revive inflation fears, keep bond yields elevated and delay hopes of easier monetary policy.
Digital assets have struggled to sustain their safe-haven argument during episodes of geopolitical stress. Bitcoin has at times rallied on distrust of fiat currencies and central banks, but trading patterns this year show it continues to behave like a high-beta risk asset when oil spikes, the dollar strengthens and investors retreat into cash or government bonds.
The Dollar Index held above 101 after Tuesday’s gains, adding pressure on dollar-priced crypto assets. A firmer dollar tends to tighten global financial conditions and reduce appetite for speculative trades. That dynamic was visible across perpetual futures, where funding rates cooled and liquidations increased as traders unwound bullish bets built during the ceasefire window.
The pressure also reflected fragile confidence across wider markets. European shares opened lower, with major benchmarks in Frankfurt, Paris and London declining. US equity futures softened, while parts of Asia came under sharp selling pressure, particularly technology-heavy markets exposed to concerns over stretched valuations in artificial intelligence-linked stocks.
Crypto’s weakness was not uniform, but market breadth deteriorated. Bitcoin’s decline was smaller than losses in some smaller tokens, signalling that traders were cutting exposure first in more volatile assets. Stablecoin volumes rose as investors shifted to the sidelines, while spot exchange-traded fund flows were being watched for signs of institutional demand at lower price levels.
The latest move complicates a market narrative that had turned more constructive after Bitcoin stabilised above $60,000. Supporters had pointed to steady institutional adoption, deeper derivatives liquidity and the resilience of long-term holders. Yet geopolitical shocks have repeatedly exposed the asset class to sharp intraday swings, especially when energy prices and interest-rate expectations move in the same direction.
The Strait of Hormuz remains central to the market reaction. A large share of global seaborne oil and liquefied natural gas passes through the waterway linking the Gulf with the Arabian Sea. Even limited attacks near the route can lift insurance costs, alter shipping patterns and unsettle commodity traders. Those risks feed into headline inflation expectations, which in turn influence rate-sensitive assets from technology stocks to cryptocurrencies.
Arabian Post – Crypto News Network
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