Ether, Solana, and other major cryptocurrencies are teetering on the brink of further losses as tensions rise in the Middle East. On Thursday, cryptocurrencies took a hit, with XRP, Cardano’s ADA, and Solana’s SOL each shedding over 1% of their value in the past 24 hours. Meanwhile, Dogecoin appeared to tread water for the day but sank over 10% for the week, erasing gains from its early June surge. Ether, too, slipped by 0.7%, wiping out its earlier weekly uptick. The backdrop? The specter of a U.S. strike on Iran and a hawkish stance from the Federal Reserve.
Market Jitters Amid Geopolitical Tensions
Rising geopolitical tensions are sending ripples through the crypto markets. With the U.S. reportedly contemplating a direct strike on Iran, investors are recalibrating their risk appetites, leading to sharp sell-offs in what are typically viewed as high-risk assets—altcoins. As Alex Kuptsikevich, an analyst at FxPro, observed, “Bitcoin seems stuck between two worlds.” Despite its 13% climb year-to-date, bolstered by ETF inflows and a softer dollar, Bitcoin hasn’t decisively claimed its role as a haven asset or a pure risk play this week. This mirrors the challenges highlighted in XRP Leads Crypto Majors Gains as Bitcoin Is Continuously Tested by Israel-Iran Tensions.
In parallel, the Federal Reserve’s cautionary stance on inflation has compounded market uncertainties. Fed Chair Jerome Powell’s remarks on Wednesday about the economic impact of tariffs and global conflicts have spooked investors across the board. He emphasized that tariffs’ costs would “fall on the end consumer,” signaling that any hopes for imminent rate cuts remain premature. This cocktail of geopolitical and economic concerns has pushed equities, crypto majors, and commodities into turbulent territory.
ETF Inflows: A Silver Lining?
In the midst of this turmoil, spot Bitcoin exchange-traded funds (ETFs) in the U.S. are attracting significant inflows, reflecting a nuanced shift in investor sentiment. Data from Wednesday shows over $389 million in fresh buys, while spot Ether ETFs recorded $19 million in positive flows. It seems that some investors are still betting on Bitcoin’s long-term potential, even as short-term uncertainties cloud the horizon. This sentiment is echoed in Bitcoin, Ether Bulls Hit With $800M Liquidation as Trump-Musk Tussle Rattles BTC, ETH.
But let’s not put all our chips on ETFs as a panacea. The broader crypto market faces headwinds from the Fed’s stance and the geopolitical unrest. Altcoins, often the first casualties in macroeconomic storms, are feeling the pressure. Their volatility makes them susceptible to rapid sell-offs when the market’s mood sours.
The Road Ahead: Navigating Uncertainty
So, what’s on the horizon for cryptocurrencies? While Bitcoin’s rangebound behavior suggests a market waiting for clearer signals, the path forward remains fraught with challenges. Investors will be closely monitoring the Fed’s next moves and geopolitical developments. However, the crypto market’s resilience and adaptability shouldn’t be underestimated. Despite the current headwinds, the sector has shown time and again its ability to rebound and innovate.
As we move deeper into June 2025, the key question is whether Bitcoin and its peers can navigate these choppy waters without losing their footing. With the Middle East tensions and economic uncertainties likely to persist, the crypto landscape is set for an eventful summer—one where caution might just be the name of the game.
Source
This article is based on: Ether, Solana, and Other Majors Could Slide Further as Trump Threatens Iran Strikes
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
