Markets are Bleeding, Why is Crypto Down Today (6/18/25)?

Updated

June 18, 2025

Gambar Markets are Bleeding, Why is Crypto Down Today (6/18/25)?

Jakarta, Pintu News – Today, Tuesday, June 18, 2025, the crypto market is in turmoil again. A number of major digital assets, including Bitcoin, Ethereum, and Pi Network, experienced significant declines that marked a weakening trend in the past 24 hours.

Negative sentiment started to dominate after a combination of global factors triggered a massive sell-off across crypto exchanges. From concerns over central bank interest rate policies, regulatory pressures, to profit-taking by retail investors-all contributed to the deteriorating market atmosphere.

In this article, we will review the main causes of today’s “bloody market” and what investors need to pay attention to going forward.

How the Middle East Crisis Affects the Crypto Market

Bitcoin fell from this week’s peak of $108,915 to $105,500 in a day. Ethereum also fell more than 2.2%, while the total market capitalization of all cryptocurrencies decreased to $3.28 trillion.

This decline coincided with a drop in the stock market, where the Dow Jones and Nasdaq 100 indices fell 165 and 100 points respectively. Concerns increased after Donald Trump urged Tehran residents to evacuate, signaling the possibility of further bombings.

In addition, the collision of two tankers that caused a fire near the Strait of Hormuz also added to the tensions, given that the strait is an important passage for millions of barrels of oil every day.

Impact of the Crisis on Oil Prices and Inflation

According to Crypto.news, the rise in crude oil prices and shipping costs has occurred in recent days. The World Container Index rose to $3,543, the highest point since January. This rise in energy and transportation costs is contributing to rising inflation, which could hinder the Federal Reserve from cutting interest rates as requested by Donald Trump.

Historically, cryptocurrency prices tend to perform better when the Federal Reserve cuts interest rates or signals future cuts. However, with the current situation, high inflationary pressures may complicate the policy.

Bitcoin as a Safe Asset

Despite the downturn, Bitcoin (BTC) and other cryptocurrencies can often recover after experiencing major geopolitical or macroeconomic shocks.

For example, in March 2020, Bitcoin (BTC) dropped from over $10,000 to under $4,000 after COVID-19 was declared a pandemic, but then surged to record highs later that year.

Data from BlackRock shows that Bitcoin (BTC) often performs better than stocks after major events. This suggests that despite volatility, Bitcoin (BTC) is still considered a safe haven asset by some investors.

That’s the latest information about crypto. Follow us on Google News to stay up-to-date on the world of crypto and blockchain technology.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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