Bitcoin, Ethereum, XRP Dip Amid US-Iran War

Key Highlights:

• Bitcoin trades near $66,601 support, with a break likely to push prices toward $60,000 in the near term, Ethereum trades below key resistance near $2,149, with downside risk extending toward the $1,747 support zone.
• Before the US market opened, Donald Trump said that American military operations would continue until strategic goals were met.
• Arthur Hayes,, observed that such conflicts are frequently accompanied by relaxed measures on the part of the Federal Reserve

Bitcoin, Ethereum, and XRP crashed further lower as the crypto market opened this week under pressure amid the ongoing US-Iran war. On Monday, Bitcoin stood near a critical support zone after holding its lower consolidation range since late last week. 

Bitcoin, Ethereum, XRP Drop Amid US-Iran Stand-off

Bitcoin was trading at around $66,601 right now, just above the $65,729 key level. Price has remained tight, with limited upside momentum. As the geo-political reality deepens, a breakdown would pave the way towards last week’s low i.e., around $62,510. If selling pressure continues to rise, the next big psychological support is around $60,000. Ethereum has also had an uphill battle to recover. The crypto was rejected close to the upper edge of its consolidation price band around $2,149 and withdrew in the ensuing sessions. On Monday, ETH was near $1,967, suggesting the reluctance of crypto buyers to buy is ongoing. Current market attitude continues to risk downside if price does not reclaim resistance levels. A maintained correction could push ETH toward the lower range support near $1,747. That level now acts as a key reference point for short-term traders.

XRP, is testing the lower boundary of a falling wedge pattern. The trendline has aligned closely with a weekly support zone around $1.35. XRP has managed to hold this level so far, even as buying pressure remains limited. A clear break below the trendline could accelerate losses and expose the same $1.30 level as immediate downside support. Market participants are monitoring  if the structure can hold or give way in the coming sessions.

Across the global crypto market, market behavior has become cautious. 

The global crypto market cap was at about $2.37 trillion, falling roughly 1.3% in the last 24 hours. Cryptocurrency isn’t the only category that has suffered. Traditional financial markets also became stressed as investors responded to escalating geopolitical conditions. The week started sharply lower for Asian equities. Japan’s Nikkei 225 dropped as much as 2.7% in early trading, and South Korea’s Kospi fell roughly 2.43%. And the sell-off reached US futures markets, too. On Sunday, major US stock index futures dropped more than 1% after reports of military strikes involving Iran. Futures linked to the S&P 500 and the Dow Jones Industrial Average both fell roughly 1.11%.

Before the US market opened on Monday, Donald Trump addressed the country and he said that American military operations would continue until strategic goals were met. His remarks added to the insecurity and further entrenched the risk-off sentiment in finance markets. Market experts are also scrutinizing how macroeconomic policy might react. Arthur Hayes, a co-founder of BitMex, observed that earlier studies had co-linked US military moves in the Middle East to monetary policy trends.

In his most recent ‘ios Warfare’ he contended that such conflicts are frequently accompanied by relaxed measures on the part of the Federal Reserve. This analysis suggests that any future expansion in liquidity could support risk assets, including cryptocurrencies, over the longer term. For now, however, Hayes insists on restraint. He added that investors may prefer to wait for clear signals of rate cuts or liquidity injections before increasing exposure to Bitcoin or other digital assets. The length and scale of the geopolitical conflict remain uncertain, and that uncertainty continues to shape market positioning.

Also Read: Bitcoin Slides as Strong U.S. Producer Price Index Dims Rate Cut Hopes