Major cryptocurrencies slid on Thursday, while the U.S. dollar gained strength amid escalating concerns over a potential broader conflict in the Middle East and a more cautious outlook from the Federal Reserve.
Tokens such as XRP, Cardano’s ADA, and Solana’s SOL all dropped by over 1% in the past 24 hours.
Dogecoin remained flat on the day at $0.17005, but is down more than 10% for the week: erasing the gains it posted earlier in June. Ether (ETH) declined by 0.7% to $2,510.35, undoing its recent positive momentum.
Despite the dip in prices, spot bitcoin (BTC) ETFs in the U.S. continued to draw investor interest, recording over $389 million in fresh inflows on Wednesday, according to market data.
Meanwhile, spot ETH ETFs brought in an additional $19 million.
The downturn in crypto coincides with geopolitical and economic jitters. U.S. officials are reportedly weighing a direct military strike on Iran, while the Federal Reserve signaled a longer fight ahead to contain inflation.
This combination has unnerved investors and led to volatility across equities, crypto, and commodity markets.
Federal Reserve Chair Jerome Powell warned Wednesday that global instability and tariffs could further complicate efforts to bring down inflation.
Although interest rates were left unchanged, Powell emphasised that the cost of tariffs “will fall on the end consumer” and that the Fed needs to “see more” progress before considering any rate cuts.
The uncertain macro landscape has taken a heavier toll on altcoins, which are often viewed as riskier investments and are typically the first to be offloaded during market stress.
Bitcoin, the largest cryptocurrency, remains rangebound around $104,318.24. While it has gained roughly 13% year-to-date, driven by ETF inflows and earlier dollar weakness, it has struggled to define its role in the current market climate.
