Global Political Tensions Shock Cryptocurrency Market
Market Disruption with Heightened Fears
Increasing geopolitical tensions strongly shake the cryptocurrency market. The US President Donald Trump once warned about the possibility of attacking Iran's supreme leader, causing investor panic. Altcoins such as Ether, Solana, XRP have dropped nearly 5% to 9% within a week.
In this context, Bitcoin also cannot avoid a sharp decline. When Bitcoin fell to a low near $108,000, altcoins also faced selling pressure, quickly pushing prices down. Especially, cryptocurrencies like Cardano, SUI, and Dogecoin lost more than 10% to 12% in the week.
Federal Reserve's Warning Letter Raises Further Alerts
Beyond geopolitical issues, the US Federal Reserve (Fed) caused additional concerns. Chairman Jerome Powell warned about risks from global conflicts and new tariffs that could worsen inflation. Although interest rates remain unchanged, investors realize that the Fed is not yet ready to reduce interest rates.
Bitcoin Maintains Its Initial Role or Safe Haven?
In an unstable environment, many investors are shifting to stablecoin or holding Bitcoin, viewing it as a risk prevention measure. However, Bitcoin has yet to confirm its position as a safe cryptocurrency like gold or a positive risk asset.
Within 1 year, Bitcoin has increased by 60%, but predictions about its next direction remain uncertain. Cryptocurrency expert Doctor Profit warns that Bitcoin could drop below $100,000, even down to $93,000, as the market prepares to receive larger macro shocks.
