#IsraelIranConflict Several factors are converging to exert downward pressure on the market. First, geopolitical turmoil has intensified, particularly with Israel's recent airstrikes on Iran, which significantly escalated tensions in the Middle East. This development triggered a risk-off sentiment across financial markets, leading investors to pull back from volatile assets. As a result, cryptocurrencies saw sharp declines—Bitcoin fell nearly 5% intraday, while Ethereum dropped around 10%. U.S. stock futures also declined by approximately 1.5–1.8%, while traditional safe-haven assets such as gold and oil surged. Second, macroeconomic and regulatory pressures are adding to the market’s stress. The Federal Reserve’s latest inflation data has reinforced expectations that interest rate cuts are unlikely in the near term, reducing investor risk appetite. Meanwhile, rising U.S.–China trade tensions and the potential for new tariffs are further increasing global economic uncertainty. Finally, market dynamics related to derivatives have contributed to the volatility. Over $3.7 billion in Bitcoin and Ethereum options expired today, often a trigger for sharp price movements as traders adjust their positions. In addition, over $1.2 billion in crypto positions were liquidated in the past 24 hours, predominantly impacting long positions.
