Bitcoin and Ethereum costs are nonetheless trending low popping out of the weekend, and there’s the chance that this might proceed this new week. A lot of developments have hit the crypto market not too long ago that would deepen the already unfavorable sentiment surrounding the crypto trade. Thus, with Bitcoin and Ethereum being the foremost digital assets within the area, they could possibly be hit first by the wave of unfavorable information popping out of the market.
US-Iran War Is Far From Over: Bitcoin, Ethereum Prices Could Crash
Back in February 2026, the United States had attacked Iranian navy forces, resulting in what is now known as the US-Iran war. Since then, tensions have remained excessive, the monetary markets have suffered tremendously consequently, and threat property like Bitcoin and Ethereum haven’t been omitted.
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In the month that adopted the preliminary assault, there had been talks of a ceasefire. However, President Donald Trump, in his newest tackle, utterly dashed the hopes of a ceasefire. According to a report from SoSoValue, this has now pushed issues towards escalation, fairly than a decision.
With President Trump dismissing the necessity for international oil and leaving the Strait of Hormuz to be guarded by different nations, oil prices are expected to ramp up higher throughout this time. In addition, there’s the expectation of rate of interest hikes, and this might negatively have an effect on the Bitcoin and Ethereum costs throughout this time.
Crypto Market Hit By Another Hack
With the transfer into the bear market and Bitcoin and Ethereum costs crashing, assaults on the crypto market appeared to have slowed down. That is, till now, when news of the DRIFT Protocol hack broke throughout the weekend.
According to reviews, the Solana protocol had been focused by North Korean menace actors, who ultimately succeeded. In jus 12 minutes, these unhealthy actors had been capable of infiltrate the protocols wallets and make away with $285 million, with the assault attributed to the Lazarus Group.
Naturally, the motion of liquidity out of the market stays a serious concern on condition that Bitcoin and Ethereum are already affected by low liquidity. The DRIFT token additionally crashed 40% as soon as the information broke, leaving the market in a state of shock.
On-chain sleuth ZachXBT additionally took to X to call out Circle for failing to behave whereas the USDC from the DRIFT assault was being moved throughout over 100 transactions. The funds have since been moved from Solana to Ethereum, leaving customers questioning as to what’s being achieved to guard towards these menace actors.
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Sentiment Falls Toward Record Levels
Another issue that would drive down the Bitcoin and Ethereum costs is the truth that buyers are nonetheless very cautious of placing cash into the market. The Crypto Fear & Greed Index is at present sitting in the Extreme Fear territory, which marks a time of low liquidity and participation available in the market.
If sentiment doesn’t start to enhance and liquidity doesn’t circulation again into the market, then the Bitcoin and Ethereum prices may proceed to say no. This may set off a cascading occasion the place buyers panic-sell with a purpose to scale back losses, thereby resulting in a steep decline.
Featured picture from Dall.E, chart from TradingView.com
