Middle East Turmoil Shakes Crypto: Altcoins Bear the Brunt as Investors Flee to Safety
Geopolitical firestorm rattles digital asset markets—altcoins bleed while Bitcoin holds relative ground.
When missiles fly, crypto portfolios nosedive. The latest Middle East tensions triggered a classic risk-off stampede, with speculative altcoins getting crushed hardest. Bitcoin dipped but avoided catastrophe—proving once again it's the 'least worst' option when traditional and crypto markets shudder.
Meanwhile, decentralized finance (DeFi) tokens got hammered like overleveraged hedge funds. Ethereum, Solana, and other major alts saw double-digit percentage drops—because nothing says 'safe haven' like panic-selling illiquid tokens into thin order books.
Silver lining? The dip buyers are already circling. After all, what's a little regional conflict when you've got diamond hands and a 10x leverage position? Just ask the 'buy the rumor, sell the news' crowd now scrambling to explain why their 'hedge against war' portfolio got wrecked.
Cynical take: Nothing unites traditional finance and crypto quite like watching retail investors get liquidated en masse while whales accumulate at discount prices. The more things change...
Rising geopolitical tensions are once again shaking up the crypto market. U.S. President Donald Trump targeting Iran’s supreme leader has sparked investor fear, leading to a sell-off in altcoins like Ether, Solana, and XRP have recorded a drop of nearly 5% to 9% in a week.
If Bitcoin plunges, Altcoin will follow, thus investors are in fear of a further market crash.
Trump’s Threat Triggered Crypto Sell-Off
On Tuesday, TRUMP posted a warning on his social media, saying the U.S. knows the location of Iran’s Supreme Leader and could strike — but “not for now.” These words were enough to shake investor’s confidence worldwide.
Soon after this post, bitcoin dropped quickly from $108,952 to $103,371 before bouncing back slightly to $104,950.
Other major coins, including Ether, Solana, and XRP, also fell. Ether lost 1.5%, dropping from $2,618 to $2,462 before recovering to $2,526. Meanwhile, solana and XRP dropped over 2% in 24 hours.
However, Cardano, SUI, and Dogecoin saw even bigger losses of over 10% to 12% for the week.
Fed’s Warning Adds More Caution
On top of geopolitical worries, the U.S. Federal Reserve added more concerns. Fed Chair Jerome Powell warned that global conflict and new tariffs could make inflation worse.
Although interest rates stayed the same, Powell made it clear that the Fed isn’t ready to lower them yet.
Bitcoin Stuck Between Roles
As tensions rose, many investors shifted their funds into stablecoins or held on to Bitcoin, viewing them as safer compared to altcoins. Despite this, BTC hasn’t acted fully like a safe-haven asset like gold, nor has it rallied like risk assets.
While Bitcoin is up 60% in the last 1 year, analysts say it’s still unclear which direction it’ll take next. Crypto expert Doctor Profit warns that BTC could dip below $100,000 soon, possibly even to $93,000, as markets brace for more macro shocks.
