Crypto Market Drops After Relief Rally as US Strikes Iran: BTC, ETH, XRP Prices Fall

After experiencing a relief rally, the crypto market dropped today. The current negative trend is mainly driven by the United States’ latest military attacks on Iran. As a result, the oil prices surged, triggering a broader risk-off sentiment. Thus, investor sentiment towards risk assets like Bitcoin, Ethereum, XRP, and other cryptocurrencies faded, and the crypto prices dropped.

The crypto market crash today is more noteworthy as it follows the recent rally. When the Bitcoin, Ethereum, and XRP prices surged past key levels on Tuesday, market participants were largely optimistic. However, things changed within hours amid escalating geopolitical tensions.

US-Iran war triggers a crypto market crash today

The crypto market is once again in the red zone today. Major currencies like Bitcoin, Ethereum, and XRP posted notable losses. The global market has plunged by nearly 1% to $2.16 trillion. This decline comes on the heels of the recent resurgence, when the market hit a two-week high of $2.2 trillion.

It is worth noting that the current negative sentiment in the crypto market is due to the increasing geopolitical pressures and the resulting rise in oil prices. As the US has launched a fresh attack on Iran, the oil price jumped to $72.6, marking an uptick of 2.18% in a day. This has weighed on the crypto sentiment, forcing investors to move away from digital assets.

The price of WTI crude oil spiked to nearly $75 as hostilities between the U.S. and Iran reignited. Source: Trading Economics

Bitcoin is currently trading at roughly $62,100 after retreating from the last day’s $64,300 peak. The leading cryptocurrency is down 1.8% on the day. However, on a weekly basis, the Bitcoin price is still up by about 6.3%.

Meanwhile, the Ethereum price slipped by roughly 2% after briefly peaking above $1,800. Despite this, ETH is still maintaining solid 10% gains on a weekly basis.

At the same time, XRP is one of the biggest losers of the day. Currently trading at $1.08, the XRP price has plunged by about 3.6% in a day. This fall is particularly noteworthy as the popular altcoin recently reached as high as $1.17.

US launches new strikes on Iran

On Wednesday, the US launched new military attacks on Iran. The move came as Tehran allegedly attacked three commercial vessels in the Strait of Hormuz. The US stated that Iran’s action threatened the freedom of navigation in the region. The US Central Command stated:

However, Iran condemned the attacks, warning that the country would take “whatever measures it deems necessary” to defend its interests. Iran’s Parliament Speaker Mohammad Bagher Qalibaf noted: “The era of bullying and extortion is over. It leads nowhere. We don’t fold.”

It is also important to mention that the latest attack comes during the funeral period for Iran’s late Supreme Leader Ayatollah Ali Khamenei. The time was expected to be calm. But in contrast, the US military attack heightened the Middle East tensions, casting a shadow over the potential resolution of the prolonged war.