Crypto market volatility: Middle East situation triggers risk aversion, Bitcoin falls below $103,000

Recently, risk events in the global financial market have occurred frequently, and the geopolitical situation remains tense. Israel has launched airstrikes on multiple targets within Iran, leading to a sharp increase in international risk-averse sentiment, causing gold and oil prices to soar. At the same time, an aircraft heading to the UK experienced an accident, resulting in significant casualties. The domestic situation in the United States is also turbulent, with unrest and protest activities occurring in multiple locations. In terms of monetary policy, the Federal Reserve has maintained a high interest rate stance since last December, and the market anticipates two possible rate cuts starting in September.

In this complex macro environment, an analyst pointed out that in the first half of 2025, the global crypto asset market will experience a key turning point from retail-driven to institution-led. Bitcoin reached an annual high of $110,000 in May, with the continuous influx of institutional funds driving the shift of crypto assets from speculative products to asset allocation tools. Crypto concept stocks performed strongly, with several related stocks recording significant gains. He believes that the resonance logic between crypto assets and concept stocks is mainly driven by three major forces: improved regulatory frameworks, sustained influx of institutional funds, and technological innovations optimizing infrastructure.

However, influenced by the situation in the Middle East, the Bitcoin market experienced a significant pullback this morning, falling below the $103,000 mark. One analyst believes that the short-term price trend will be mainly affected by geopolitical situations. Regarding Ethereum, although the price has dropped below $2,500, institutional investors are still actively positioning themselves. A large address purchased 2,825 ETH again this morning, accumulating a total of 160,736 ETH over the past two weeks. Another institutional investor used 127 million USDC to buy 48,800 ETH within 6 hours after the market drop today. A report from a certain analysis team indicates that if the ETH price falls below $2,320, it may test the $2,000 to $1,800 range, but is more likely to continue rising in the short term. The year-end target remains at $4,000.

In terms of market dynamics, a certain AI project opened with a market capitalization close to 100 million USD, and has currently retraced to 53 million USD. A certain Meme coin has also experienced a pullback from a new high of 200 million USD to 133 million USD. Notably, after a certain encryption project token reached a new high, a Canadian listed company increased its holdings of that token. On the other hand, a Nasdaq-listed company saw its stock price plummet 70% in after-hours trading due to the submission of a registration statement allowing PIPE financing-related shareholders to resell nearly 58.7 million shares.

Key data shows that Bitcoin is currently priced at $104,417, and Ethereum is at $2,511.08. The Fear and Greed Index is at a neutral level. In the past 24 hours, a total of 246,510 people were liquidated globally, with a total liquidation amount of $1.14 billion. Both Bitcoin ETF and Ethereum ETF are showing a net inflow trend.

Today's market focus includes: a new coin launch on a certain wallet platform, new trading pairs added on a certain exchange, and multiple project token unlocks. Among the top 500 crypto assets by market capitalization, the ones with the largest gains include Venom, NEXPACE, Orbs, etc.

In hot news, a publicly traded company plans to raise $750 million to purchase Bitcoin; a related address of a certain crypto exchange has transferred a large amount of SOL tokens; the U.S. Senate will have a final vote on the stablecoin bill; reports show that 74% of family offices have allocated or are considering allocating digital assets; multiple institutions are considering issuing stablecoins or increasing their holdings in crypto assets.