- A crypto market crash is underway, with Toncoin, Zcash, and Ondo leading.
- There is a high possibility that Donald Trump will attack Iran.
- Bitcoin and Ethereum ETFs have suffered substantial outflows.
A crypto market crash is happening today, with top altcoins like Toncoin, Zcash, and Ondo leading the downturn. Toncoin fell by 10% in the last 24 hours, while Zcash, Ondo, Uniswap, and Pudgy Penguins dropped by over 9%. In total, the market capitalization of all tokens dropped by 2.57% in the last 24 hours.
Crypto Market Crash as Traders Predict Trump Will Attack Iran
A major reason why the crypto market crash is happening today is the rising probability that President Donald Trump will launch an attack against Iran as soon as this weekend.
A few things have boosted this possibility. For one, top leaders in the US Senate have asked him to “finish the job.” For example, in a statement, Senator Roger Wicker pushed him to attack, arguing that more talks will lead to the US being seen as a weak country.
Second, Trump missed Donald Trump Jr.’s wedding, opting to stay in Washington for the weekend. This is notable because Trump often spends his weekends in Florida or some of his other facilities. Other senior security officials are also spending the weekend in Washington.
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Third, analysts note that Tulsi Gabbard’s resignation was not a mistake. While she cited her husband’s health issues, these analysts note that she could have resigned earlier.
A new war with Iran would have major repercussions. For one, Iran has warned that it will now deploy its new technology weapons to attack other countries in the region.
In a statement this week, officials warned that they will expand their attacks, with analysts expecting the closure of the Red Sea. Iran has also warned that it will start destroying undersea internet cables at the Strait. This is why Saudi Arabia, Qatar, and the UAE have urged the US to delay the attacks.
The war will lead to higher crude oil prices and trigger higher inflation in the US, making it hard for the Federal Reserve to cut interest rates.
Bitcoin and Ethereum ETF Outflows
The crypto market crash is happening as American investors, potentially institutions, dump their Bitcoin and Ethereum ETFs. Spot Bitcoin ETFs have shed over $1 billion this month, erasing the $1.6 billion that they added in the first six days.
The same is happening with Ethereum, whose funds have shed nearly $300 million in assets this month. This selling is a sign that these investors expect the prices to drop. As we wrote here, Bitcoin has formed a rising wedge pattern, pointing to more downside, a move that will lead to a steeper crypto crash.
At the same time, the decline is partly because of the ongoing profit-taking as some of the top laggards were among the top gainers a few days ago. For example, Zcash and Ondo have soared by double digits in the past few days. It is common to see the top gainers become the main losers.
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