XRP News Today: Crypto Market Cap Drops 4.47% Amid Middle East Tensions

The cryptocurrency market is experiencing significant pressure today, with the global crypto market cap dropping by 4.47% to $3.18 trillion. This decline is attributed to growing geopolitical tensions in the Middle East, which have fueled investor uncertainty. Top assets like Bitcoin, Ethereum, and XRP have all slid in the past 24 hours, with Bitcoin currently trading at $104,954, down over 2%, and Ethereum falling to $2,522 after a 2.66% dip. XRP has been hit even harder, plunging over 9% to $2.16 as traders react to both market volatility and delays in its ETF decision. Altcoins like Solana, Cardano, and Dogecoin are also under pressure, with Cardano sliding 3.5% and Dogecoin shedding over 2%. The Fear & Greed Index now stands at 48, indicating a cautious market sentiment.

The latest escalation in the Iran-Israel conflict is adding fuel to the fire. Reports confirmed that Iran has showcased its hyper-ballistic missiles, capable of targeting Tel Aviv and bypassing Israel’s Iron Dome. In response, Israel bombed Iran's state-run broadcast station in a bold move aimed at silencing propaganda. Meanwhile, the U.S. President abruptly left a summit to return to Washington, sparking rumors of an imminent U.S. intervention. The President warned citizens to immediately evacuate Tehran, posting that Iran "should have signed the deal" and hinted at the possibility of severe military action. Polymarket odds of U.S. involvement surged, raising concerns in crypto markets alike.

If tensions continue to rise and the U.S. signals direct involvement, Bitcoin could test the psychological $100,000 support level in the coming sessions. A break below that could open the door for a sharper drop toward the $92,000–$95,000 zone, a region traders have been eyeing as a possible pullback target. Ethereum may follow suit, with short-term support seen at $2,400. If broken, ETH could slip further to $2,200.

The crypto market experienced a significant downturn today, with the total market capitalization shrinking to $3.28 trillion, marking a 1.48% decrease in the past 24 hours. This decline is attributed to a combination of factors, including rising liquidations and macroeconomic caution. The market's weakness was further exacerbated by geopolitical risks and the anticipation of the Federal Reserve's interest rate decision. Bitcoin, the leading cryptocurrency, dipped amid reports that the U.S. President had called advisers to the situation room. This news, coupled with the broader market losses, contributed to a 3.5% decline in SHIB and a drop in Bitcoin's price. The overall crypto market is shrinking this week, with the total crypto market capitalization representing a 5.15% decrease from the previous week.

The decline in the crypto market is driven by a confluence of factors, including high-leverage long liquidations, weak technical momentum, and increased macroeconomic caution. The market's volatility is also influenced by regulatory uncertainty, with the U.S. Senate voting on a new bill that sets legal rules for stablecoins. This vote adds regulatory pressure during an already fragile industry. Despite the market downturn, there are signs of long-term optimism. Thailand's Cabinet has approved a tax exemption on capital gains from the sale of digital assets through licensed cryptocurrency exchanges, making Thailand one of the most crypto-friendly nations in Asia. This move is designed to stimulate the local sector and attract global investors.

Additionally, Bitcoin ETF inflows soared to $412 million despite the price dip, marking the sixth straight day of institutional buying. This suggests that while the crypto market is crashing today, big players are still accumulating. The launch of the first-ever Spot XRP ETF in Canada also signals rising demand for regulated altcoin ETFs. In conclusion, the crypto market's decline today is driven by a mix of regulatory uncertainty, profit-taking, and industry reactions to upcoming decisions. However, underneath the red candles, serious developments are taking place, including Solana ETF filings, stablecoin bill votes, Bitcoin ETF inflows, and global tax incentives. If history repeats, today’s fall could be tomorrow’s entry point.