“Ethereum, Solana, and Top Tokens Face Downside Pressure Amid Trump’s Warnings of Military Action Against Iran.”

Crypto Majors Slip as Middle East Tensions and Inflation Fears Roil Markets

Tensions in the Middle East are fueling a rush to safety, sending traders out of altcoins and into stablecoins and bitcoin, as uncertainty grows over potential U.S. military action and stubborn inflation.

Major crypto tokens extended losses on Thursday, while the dollar firmed amid deepening geopolitical worries.

XRP fell over 1% to $2.1060, Cardano’s ADA slid to $0.5545, and Solana’s SOL dropped to $143.02. Dogecoin was flat on the day at $0.1608 but has tumbled more than 10% this week, erasing its early June rally. Ether slipped 0.7% to $2,426.63, surrendering gains from earlier in the week.

Despite market jitters, U.S. spot bitcoin ETFs continued to attract fresh money, logging over $389 million in inflows on Wednesday. Spot ether ETFs saw $19 million in new investment.

Markets remain uneasy amid reports that U.S. officials are considering direct strikes on Iran. Meanwhile, the Federal Reserve signaled that inflation could remain persistent, adding to global uncertainty.

Fed Chair Jerome Powell cautioned on Wednesday that tariffs and geopolitical conflict could complicate efforts to tame inflation. While the Fed kept rates steady, Powell warned that the cost of tariffs “will fall on the end consumer,” and policymakers “need to see more” data before cutting rates.

Altcoins, seen as higher-risk assets, are often first in line for selloffs during times of geopolitical or macroeconomic stress.

Bitcoin remains stuck in a tight trading range. Although it’s up 13% year-to-date thanks to ETF inflows and a weaker dollar, it hasn’t clearly behaved as either a safe-haven asset or a risk-on bet this week.

“Bitcoin seems stuck between two worlds,” said Alex Kuptsikevich, analyst at FxPro. “It’s not reacting to higher risk appetite, nor is it surging like gold when conflict flares up.”