Cryptocurrency Market Down: Impact of Geopolitical Tensions and FOMC Meeting
Cryptocurrencies decline amid Iran-Israel tensions and FOMC meeting anticipation, affecting Bitcoin, Ethereum, and more.
Cryptocurrencies are experiencing a downturn for the second consecutive session, with mounting geopolitical tensions between Iran and Israel, coupled with the cautious anticipation of the upcoming Federal Open Market Committee (FOMC) meeting, impacting investor sentiment globally.
As of the latest data, Bitcoin (CRYPTO: BTC) is trading at $104,397.09, marking a 1.4% decrease. Ethereum (CRYPTO: ETH) follows suit, with a 2% decline, dropping to $2,499.56. Solana (CRYPTO: SOL) and XRP (CRYPTO: XRP) have seen more significant losses, falling by 3.3% and 3.4% to $145.94 and $2.13, respectively. Meanwhile, Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) have dipped by 2.3% and 1.5%, trading at $0.1673 and $0.00001153.
Despite the widespread price drops, data from IntoTheBlock reveals some positive trends. There has been a notable increase in large transaction volumes for Bitcoin and Ethereum, rising by 16.4% and 6.1%, respectively. Additionally, the number of daily active addresses has grown by 1.6% for Bitcoin and 7.2% for Ethereum, indicating sustained interest and activity among users.
However, the market's volatility is further underscored by Coinglass data, which reports that 108,715 traders were liquidated in the past 24 hours, with the total liquidation value reaching $322.24 million. These figures highlight the fragility of the current crypto market situation.
Moreover, SoSoValue data shows that there has been a net inflow of $216.5 million into spot Bitcoin ETFs, suggesting that while short-term trading is volatile, long-term investment strategies are still being pursued by some investors.
Overall, the cryptocurrency market remains under pressure as global events unfold and key financial meetings approach. Investors are advised to stay informed and consider both the geopolitical climate and upcoming economic indicators when making investment decisions.