XRP News Today: Crypto Market Cap Drops 4.32% Amid Middle East Tensions

The crypto market is experiencing a significant downturn today, with the global market cap decreasing by 4.32% to $3.25 trillion. Major cryptocurrencies, including Bitcoin, Ethereum, XRP, and Solana, are all seeing sharp declines. Bitcoin is currently trading below $104,000, with support levels around $101,000 to $102,000. Ethereum has dropped over 9% in the past 24 hours, falling to around $2,501. XRP has also taken a hit, slipping by more than 5% to trade at $2.11. Popular altcoins like Solana and Dogecoin aren’t spared either — SOL is down over 10% while DOGE has fallen by nearly 9%. Even large-cap tokens like BNB and Cardano have lost ground, dropping 2.89% and 8.6% respectively.

The primary reason for today’s crypto sell-off is a sudden escalation in Middle East tensions. Israel reportedly launched an airstrike on Iran’s nuclear facilities on June 13, causing global investors to rush 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, a move similar to what happened during the U.S.-Iran conflict in 2020.

Macroeconomic and regulatory pressures are also contributing to the market downturn. U.S. Treasury Secretary Janet Yellen recently warned that 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. The next big event for the markets is the upcoming interest rate decision, due in a few days. Right now, there’s a 99% chance rates will stay the same. The market’s hoping Fed Chair Jerome Powell will sound more confident about future economic stability, hinting at rate cuts later. If not, and if the Fed sticks to its “wait and see” stance, markets might stay weak for now.

Additionally, the recent launch of CFTC-compliant perpetual futures contracts by Coinbase has pulled short-term liquidity away from spot markets, adding to the downward pressure. The combination of geopolitical risks, macroeconomic uncertainty, and regulatory pressures has created a challenging environment for crypto assets, leading to a market-wide cooldown phase. Despite strong ETF inflows and earlier bullish momentum, the market's technical overextension has also played a role in the current downturn. Bitcoin, which had been on an uptrend, retreated from the $110,000 mark, causing a ripple effect across the broader crypto market. The drop in Bitcoin's price has led to a decrease in the overall market capitalization, with BTC and ETH being the most affected.

The market's decline has also resulted in significant liquidations, further exacerbating the sell-off. The liquidations have primarily affected leveraged positions, highlighting the risks associated with trading in a volatile market. In summary, the crypto market's downturn today can be attributed to a combination of geopolitical risks, macroeconomic uncertainty, and technical factors. The recent geopolitical tensions and inflation data have created a challenging environment for crypto assets, leading to a market-wide cooldown phase. The drop in Bitcoin's price has also contributed to the overall decline, with significant liquidations further exacerbating the sell-off. As the market continues to navigate these challenges, investors are advised to remain cautious and monitor developments closely.