Major cryptocurrencies slumped Thursday as rising geopolitical tensions and persistent inflation fears sent shockwaves through global markets. XRP, Cardano (ADA), and Solana (SOL) each dropped over 1% in 24 hours, while Dogecoin (DOGE) remained flat for the day but erased over 10% of gains from its early June rally. Ethereum (ETH) dipped 0.7%, wiping out its recent weekly gains.
Bitcoin (BTC), trading near $105,000, stayed rangebound despite ongoing market volatility. While BTC is up 13% year-to-date — thanks to ETF inflows and previous dollar weakness — it failed to behave as either a risk asset or safe haven amid heightened global uncertainty.
Altcoins, often seen as high-risk assets, were hit hardest as investors fled to safety. FxPro analyst Alex Kuptsikevich noted Bitcoin appears “stuck between two worlds,” lacking the rally seen in traditional safe havens like gold or the decline of equities.
Meanwhile, U.S.-listed spot Bitcoin ETFs recorded over $389 million in inflows on Wednesday, reflecting institutional interest despite price stagnation. Spot Ether ETFs also posted $19 million in fresh investments.
Market jitters grew after reports that the U.S. is considering a direct strike on Iran, escalating fears of a broader Middle East conflict. The Federal Reserve added to the unease by maintaining interest rates and warning of stubborn inflation, driven in part by tariffs and global instability. Fed Chair Jerome Powell emphasized the need for more data before any potential rate cuts, stating that the burden of tariffs “will fall on the end consumer.”
With macro uncertainty intensifying and inflation risks rising, crypto markets are likely to remain volatile in the short term, particularly for altcoins, which are more sensitive to risk-off sentiment.
