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Bitcoin fell on Monday, continuing its decline from the weekend as heightened concerns over the Israel-Iran conflict kept risk appetite subdued. The world’s largest cryptocurrency slipped 1.3% to $101,501.8 by 01:35 ET (05:35 GMT), briefly dropping to as low as $99,000 on Sunday. This marks the first time in June that Bitcoin has broken below its previously stable range of $103,000 to $108,000, though it managed to hold onto the $100,000 level.
The broader cryptocurrency market also showed signs of weakness as traders flocked to the U.S. dollar for safety, reflecting the increased uncertainty surrounding the escalation of geopolitical tensions.
U.S. Strikes Iranian Nuclear Sites, Awaiting Tehran’s Response
The downturn in cryptocurrency prices coincided with the U.S. airstrikes over the weekend, which targeted three key Iranian nuclear facilities. President Donald Trump claimed the strikes had successfully destroyed the sites, though these claims were not immediately verified. The United Nations’ nuclear watchdog reported no immediate rise in radiation levels at the facilities.
Nevertheless, Iran condemned the attacks, vowing severe retaliation. Media reports have suggested that Tehran may block the Strait of Hormuz, a critical global shipping route that sees a significant portion of the world’s oil shipments. If this happens, it could disrupt global oil supplies, causing crude prices to spike.
The sharp rise in oil prices on Monday further fueled inflationary concerns, particularly over energy costs, raising fears that global interest rates could remain elevated for a longer period. This has added to the broader sense of risk aversion, with Bitcoin and other speculative assets, like cryptocurrencies, suffering in response.
Crypto Markets Under Pressure from Hawkish Fed and Geopolitical Tensions
Although cryptocurrencies are not directly impacted by geopolitical events, their speculative nature makes them highly sensitive to shifts in market sentiment. Last week, hawkish comments from the U.S. Federal Reserve added pressure to the crypto market, with fears mounting that interest rates will stay higher for longer, keeping inflationary pressures in check.
Broader crypto prices tracked Bitcoin’s weakness, with investors cautious ahead of upcoming U.S. Federal Reserve remarks. Fed Chair Jerome Powell is set to testify before Congress starting Tuesday, and market participants will be closely watching for any signals regarding future rate cuts.
Among major cryptocurrencies, Ether fell 1.9% to $2,247.59, while XRP dropped 2.5% to $2.0299. Cardano and Solana also saw losses of over 1%, while Dogecoin and $TRUMP fell by 1.3% and 1.6%, respectively.
With global markets on edge due to ongoing geopolitical concerns and tightening monetary policy, cryptocurrency prices remain under pressure, keeping investors in wait-and-see mode for further developments.
