BTC rose 1.7% to $107,500 while the total crypto market cap dipped 1%.
The cryptocurrency market remained steady on Wednesday, following two days of gains driven by easing tensions in the Middle East.
Bitcoin (BTC) rose 1.7% on the day to $107,500, while Ethereum (ETH) held steady at $2,420. XRP posted a modest 0.6% gain to $2.20, and Solana (SOL) remained unchanged at $145.
The total cryptocurrency market capitalization decreased by 1% over the past 24 hours to around $3.42 trillion. Leveraged liquidations totaled around $222 million in the same period, according to CoinGlass. BTC liquidations amounted to nearly $73 million, while ETH followed with $62 million. Altcoin liquidations totaled approximately $19 million.
U.S. spot Bitcoin exchange-traded funds (ETFs) recorded $588 million in inflows on June 24, the highest in over a month. Meanwhile, spot ETH ETFs brought in $71 million in inflows, according to SoSoValue data.
Experts attribute today’s muted market movement to the Federal Reserve’s wait-and-see approach, which Fed Chair Jerome Powell reiterated on Tuesday. Powell, while testifying before the House Financial Services Committee, noted that inflation is still above the Fed’s 2% target.
“Policy changes continue to evolve, and their effects on the economy remain uncertain,” Powell said. “The effects of tariffs will depend, among other things, on their ultimate level.”
Powell’s approach “underscores short-term uncertainty in rate policy,” said Bitunix analysts. “Traders are advised to remain cautious near resistance zones. If inflation data continues to cool and support levels hold, new long positions may be considered.”
They added that Powell’s remarks “provide markets with flexibility and are overall supportive of risk assets, but investors should closely monitor upcoming tariff developments and inflation data.”
Geopolitical tensions are also weighing on investor sentiment, as the conflict involving Iran, Israel, and the United States shows no signs of easing.
Over the weekend, the U.S. targeted three Iranian nuclear sites. On Tuesday, President Donald Trump announced a ceasefire; however, reports of a subsequent Israeli strike on Tehran have since caused confusion and uncertainty.
“Geopolitical issues, such as wars or sanctions, typically impact traditional markets, like equities and commodities, first and most directly,” said Werner Broennimann, Investment Manager, and Sonali Gupta, Research Lead at AMINA Bank, in a joint statement shared with The Defiant.
“In the long run, cryptocurrencies, by contrast, are generally affected predominantly when these events intersect with the digital asset ecosystem, such as the use of crypto to bypass traditional financial channels or facilitate cross-border donations,” they added.
