The crypto crash resumed today, with Bitcoin and most altcoins in deep red, as traders awaited the upcoming meeting between Donald Trump and Benjamin Netanyahu. Bitcoin price slipped to $66,600 from the year-to-date high of nearly $100,000, while Ethereum dipped to $1,942.
Crypto Crash Continues Ahead of Trump-Netanyahu Meeting
The market capitalization of all tokens dropped by over 3% to $2.27 trillion, while the Crypto Fear and Greed Index slumped to 9. Some of the top laggards in the cryptocurrency market were altcoins such as MYX Finance, Bitget Token, Sky, Zcash, and Humanity Protocol.
The crypto crash occurred as investors awaited the upcoming meeting between Donald Trump and Benjamin Netanyahu. Netanyahu hinted that his primary goal is to press the United States as negotiations with Iran continue.
While Trump wants to negotiate on nuclear, Netanyahu is pressing the US to include other details, including Iran’s ballistic missile program and its support for proxies like Hezbollah, Hamas, and Houthis. Iran has insisted that those other measures are not up for debate.
Therefore, there is a risk that Trump will attack Iran soon. Indeed, data from Polymarket shows that the odds of an attack occurring before December 31 rose to 62%. An attack happening before June 30 rose to 55%. Additionally, gold, a common safe haven, and crude oil rose. Iran has hinted that it will disrupt oil flows at the Strait of Hormuz.
Crypto Crash Happened After White House Meeting
The other main reason for the crypto crash is that the White House meeting with officials from banks and crypto companies did not generate the desired result.
The three sides did not reach an agreement on the major gaps in the CLARITY Act. Banks contend that crypto companies should not provide stablecoin rewards, arguing that such rewards will lead to outflows from their institutions.
A deal will lead to the passage of the CLARITY Act, the most important crypto regulation after the GENIUS Act.
The other main catalyst for the crypto crash is the upcoming macro data, including the US non-farm payrolls (NFP) on Wednesday and the latest US consumer inflation report on Friday this week. These numbers will help the Federal Reserve determine when to cut interest rates.
The technicals also explain why the crypto market crash is happening. For example, Bitcoin price remains below all moving averages and the Supertrend indicator, a sign that the downtrend is gaining momentum.
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