Bitcoin, Ethereum, and Solana post gains as investors regain risk appetite.
The cryptocurrency market opened the week in the green, rebounding from last week’s losses driven by rising geopolitical tensions in the Middle East.
Bitcoin (BTC) is up 3% on the day to $108,400, while Ethereum (ETH) spiked 4% to $2,652. XRP increased by 7% in the past 24 hours to $2.32, and Solana (SOL) rose by nearly 4% to $158.
The total cryptocurrency market capitalization increased by 1.1% in the past 24 hours to $3.52 trillion. Leveraged liquidations surged to $245 million during the same period, with BTC accounting for $76 million, according to CoinGlass. ETH followed with $75 million in liquidations, while altcoins recorded around $19 million.
U.S. spot BTC exchange-traded funds (ETFs) attracted $301 million in inflows on June 13. Meanwhile, spot ETH ETFs recorded $2 million in outflows, according to SoSoValue data.
“The crypto market is starting to calm down after the recent geopolitical tension, as the conflict between Israel and Iran looks like it’s being contained,” said Tracy Jin, COO of cryptocurrency exchange MEXC. “With no regional spillover and financial markets stabilizing, risk appetite is back.”
Last week, Israel launched an attack on Iran, killing several military leaders and nuclear scientists. Iran, in retaliation, launched a wave of attacks against Israel, major news outlets reported.
The conflict quickly rattled both traditional and cryptocurrency markets. However, sentiment seems to have improved since the U.S. said it would not be directly getting involved.
“I don’t want them going in, because I think it would blow it — might help it actually, but it also could blow it, but we’ve had very good discussions with Iran,” Trump told reporters, per NBC News. “I prefer the more friendly path.”
Meanwhile, the Federal Reserve’s upcoming interest rate decision is also adding to investor uncertainty.
“The upcoming Federal Reserve meeting on June 18 is in focus, and markets anticipate that interest rates will remain unchanged,” said Mena Theodorou, co-founder of crypto exchange Coinstash. The CME Fedwatch tool currently predicts a 99.8% chance of a hold this week.
“However, any unexpected decisions could significantly impact crypto markets,” he said. “A surprise rate cut might provide a boost to Bitcoin, pushing past its current resistance level of $109,000 and potentially nearing its all-time high of $111,970.”
Theodorou explained that while investor sentiment is shaky, the Federal Reserve’s upcoming decision will be a “key determinant of market direction” in the short term.
