- The crypto market is going down today as geopolitical risks rise.
- The market capitalization of all coins has dropped by over 4% in the last 24 hours.
- The stock market was also in the red, with the Dow Jones and Nasdaq 100 falling by over 100 points.
The crypto market is going down today, erasing some of the gains made earlier this week when Bitcoin jumped to $76,000 for the first time in over a month. Bitcoin briefly traded below the important support level at $70,000, then recovered.
Crypto Market Crash as Geopolitical Risks Rise
The market capitalization of all coins dropped by over 4.4% on Thursday to $2.42 trillion, with top altcoins like Zcash, Worldcoin, Bittensor, Mantle, Dash, and Ethena falling by over 10% in the last 24 hours.
Similarly, the stock market is also down, with futures tied to the Dow Jones Industrial Average and the Nasdaq 100 falling by over 120 points. The two indices dropped by over 738 points and 330 points, respectively.
Global stocks are also tumbling, with the German DAX, French CAC 40, and Euro Stoxx falling by over 2.4%. In Asia, key indices such as the Hang Seng and the Nikkei 225 also continued their downtrend today.
The stock and crypto markets continued falling as geopolitical risks continued rising, with Iran and Israel attacking key energy infrastructure. As a result, the West Texas Intermediate (WTI) and Brent crude oil prices surged to $116 and $97, respectively.
The worst affected were natural gas prices. European and UK gas benchmarks have all jumped by over 100% this year.
READ MORE: Coinbase Stock Price Eyes a 40% Surge as Key Catalysts Emerge
These numbers suggest inflation will continue to rise in the coming months, leading to more hawkish central banks. In a statement this week, the Reserve Bank of Australia (RBA) hiked interest rates by 0.25%, while the Federal Reserve delivered a highly hawkish interest rate decision.
The Bank of England (BoE) and the European Central Bank (ECB) left interest rate decisions, but warned that inflation was a real concern. Bitcoin and other cryptocurrencies often underperform the market when key central banks are hawkish.
Will Crypto Prices Rebound?
On the positive side, the crypto market has remained relatively stable amid the ongoing war in Iran.
Indeed, data show that investors have continued buying Bitcoin and Ethereum ETFs, a sign they expect prices to rebound.
SoSoValue data shows that spot Bitcoin ETFs have seen inflows over the last 7 consecutive days, bringing cumulative inflows this month to over $1.74 billion. This is a big turnaround as the funds shed over $6.3 billion in assets in the previous four consecutive months.
Spot Ethereum ETFs have also continued adding assets this month. These funds have added over $358 million this month, while Solana has added $55 million in assets.
Therefore, the ongoing inflows into crypto ETFs suggest prices may rebound soon. A complete recovery will be confirmed if Bitcoin moves above the key resistance level at $80,000.
READ MORE: Nebius Stock Price Crashed 10%: Top Reasons NBIS Will Rebound Soon
