XRP News Today: Middle East Tensions Spark 12% Altcoin Plunge

Geopolitical tensions in the Middle East have significantly impacted the cryptocurrency market, with altcoins experiencing the most severe losses. The market turmoil was triggered by U.S. President Donald Trump's warning about potential strikes on Iran, which caused a panic-driven sell-off across major altcoins and Bitcoin.

Ether, Solana, and XRP were among the hardest hit, with each recording a drop of nearly 5% to 9% within a week. Cardano, Dogecoin, and SUI suffered even more significant losses, with weekly declines of over 10% to 12%. The sell-off was driven by investor fear of a further market crash, as Bitcoin's volatility often sets the tone for the broader crypto market.

Trump's threat to target Iran's Supreme Leader sent shockwaves through the market, with Bitcoin quickly dropping from $108,952 to $103,371 before recovering slightly to $104,950. Ether, Solana, and XRP also experienced notable declines, with Ether losing 1.5% and Solana and XRP dropping over 2% in 24 hours.

Adding to the market's woes, the U.S. Federal Reserve warned that inflation remains sticky, delaying any potential interest rate cuts. Fed Chair Jerome Powell cautioned that global conflict and new tariffs could exacerbate inflationary pressures, further dampening investor sentiment.

As tensions rose, many investors shifted their funds into stablecoins or held onto Bitcoin, viewing them as safer assets compared to altcoins. However, Bitcoin has not fully acted as a safe-haven asset like gold, nor has it rallied like risk assets. Despite being up 60% in the last year, the direction of Bitcoin remains uncertain.

Crypto expert Doctor Profit warned that Bitcoin could dip below $100,000 soon, possibly even to $93,000, as markets brace for more macro shocks. The broader crypto market has been on edge due to geopolitical tensions, with the Altcoin Season Index declining to just 22, reflecting reduced interest in altcoins.

The market downturn has also affected other major cryptocurrencies, with NEAR experiencing an 8.29% decline as tensions in the Middle East continued to rattle the market. The broader financial markets have also been impacted, with delays in ETF approvals and other regulatory uncertainties adding to the market's volatility.

The cryptocurrency market's sharp decline, losing nearly 4.5% of its value in 24 hours, highlights its sensitivity to geopolitical events and regulatory developments. As the conflict between Israel and Iran continues to escalate, the crypto market is likely to remain volatile, with investors closely monitoring the situation for any signs of resolution or further escalation.