Crypto Market Takes a Hit Amid Geopolitical Tensions
The global cryptocurrency market has seen a 6.2% drop in the last 24 hours, settling at $3.16 trillion.
Some cryptocurrencies, however, are defying the trend. Gains Network (GNS) saw a 49.8% increase, while Poollotto.finance rose by 38.2%. Banana For Scale, a meme coin, jumped 21.3%. conversely, Reservoir rUSD (RUSD) fell by 50%, Gorbagana by 36.8%,and GAME by Virtuals by 34.7%. This shift reflects investors’ preference for safer assets like the U.S. dollar, gold, and Treasury bonds during uncertain times. The U.S.Dollar Index, though slightly lower at 98.774, is expected to strengthen due to safe-haven demand, according to Reuters.
Geopolitical tensions between the U.S.and Iran are driving this risk-off behavior. Cryptocurrencies, despite being decentralized, are seen as speculative.When conflicts arise, investors seek security, not volatility.
Not all cryptos are suffering. Gains Network (GNS) rose 49.8%, Poollotto.finance climbed 38.2%, and Banana For Scale increased by 21.3%. However,Reservoir rUSD (RUSD) fell 50%,Gorbagana dropped 36.8%, and GAME by Virtuals fell 34.7%. These fluctuations highlight crypto’s sensitivity to global events.
Macroeconomic factors like inflation from rising oil prices and central bank rate hikes also impact crypto sentiment. higher interest rates make riskier assets less attractive. In uncertain times, investor appetite can shift quickly, emphasizing the need for caution in the crypto market.
