Crypto Markets Plummet Amid Rising US–Iran Geopolitical Tensions!

Updated

June 23, 2025

Gambar Crypto Markets Plummet Amid Rising US–Iran Geopolitical Tensions!

Jakarta, Pintu News – This weekend, the crypto market experienced a sharp decline as geopolitical tensions escalated following the attack by the United States on Iran’s nuclear sites.

President Donald Trump’s decision to launch the attack has sparked global concern and affected financial markets, including cryptocurrency markets.

Check out the full information in this article!

Key Causes of Crypto Market Decline

The attack by the US along with Israel on three major Iranian nuclear sites on Sunday has caused panic in global markets. President Trump claimed that the strikes completely destroyed the facilities.

In response, Iran promised to defend its sovereignty, according to a New York Times report. As a result, the price of Bitcoin fell below $103,000, while other major cryptocurrencies such as Virtuals Protocol , Celestia , AB (AB), and Aptos also saw a drop of more than 9% in the past 24 hours.

The uncertainty generated by this conflict has prompted investors to shun riskier assets. History has shown that assets such as stocks and cryptocurrencies tend to decline after major unexpected events, such as retaliatory tariffs imposed by Trump or the COVID-19 pandemic.

Also read: Iran vs US Conflict Heats Up, These 3 Cryptos Become Investors’ Hunting Ground!

Impact of Middle East Crisis on Inflation

why the crypto market is down — Generated by AI

In addition to market instability, the crisis in the Middle East also has the potential to cause a surge in crude oil prices and shipping costs. The Brent and West Texas Intermediate oil price indexes have jumped more than 32% from this year’s low. This price increase is expected to continue, which may cause consumer inflation in the US to rise.

This rise in inflation will make it difficult for the Federal Reserve to cut interest rates. In its last meeting, the US central bank decided to keep interest rates between 4.25% and 4.50%, and signaled that there will be two rate cuts this year and four in 2026 and 2027. This situation negatively affects cryptocurrencies, which usually rise when interest rates are lowered.

Crypto Market Outlook Amid Geopolitical Tensions

The highly volatile crypto market may continue to fluctuate as the geopolitical situation develops. Analyst from Tellimer, Hanain Malik, states that markets such as crude oil, stocks, and crypto will depend on whether Iran retaliates and expands the war or chooses to back down and make concessions on its nuclear program.

Investors are expected to remain vigilant and consider diversifying their portfolios to reduce risk. While the crypto market offers great profit potential, the current high uncertainty demands a more cautious approach to investment.

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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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