On June 17, the cryptocurrency market experienced a widespread sell-off, with nearly all major assets trading in the red. Bitcoin fell nearly 4%, dropping below the $104,000 mark. Ethereum, Solana, and XRP saw steeper declines, each losing over 6%. Hyperliquid, which had recently reached all-time highs, dropped more than 12% and slipped below $40.
At the time of writing this article, aside from Four (FORM), every coin in the top 100 by market capitalization is in negative territory.
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Geopolitical Tensions Impact Risk Sentiment
The sharp decline is related with increased tensions in the Middle East. U.S. President Donald Trump issued a public statement demanding Iran’s “unconditional surrender” and warned that American patience was “wearing thin”. In the same post, he mentioned that the U.S. had located Iran’s Supreme Leader but would not take action for now:
These remarks followed a warning from an Iranian military commander regarding potential attacks on Israel. As the situation developed, traditional markets also turned lower. The S&P 500, Nasdaq, and Dow Jones each fell by approximately 0.8%. Oil prices rose sharply, with Brent crude gaining over 3% and West Texas Intermediate approaching $74 per barrel.
Retail and Economic Data Adds Pressure
New U.S. retail data showed a 0.9% decline in May sales, marking the largest drop in four months. Sales at auto dealerships, service stations, and restaurants were all down. Core retail sales, which exclude volatile components like food and fuel, increased slightly by 0.4%.
The same day, the Federal Reserve began a two-day policy meeting. While no immediate rate changes are expected, investors are watching for signals on whether policymakers still plan to cut interest rates twice in 2025.
What’s Next?
The crypto is not at fault here – the downturn mirrored a broader pullback across global markets triggered by geopolitical concerns and signs of economic slowing. The combination of declining institutional flows, weak retail data, and heightened geopolitical risk contributed to increased selling pressure across digital assets.
Investors are now focusing on the outcome of the Federal Reserve’s meeting and any further developments in the Middle East as potential catalysts for future price movement.
