Late-Day Selloff Sends Bitcoin Below $106K, Pressures Broader Crypto Market

Crypto Market Sinks as Geopolitical Tensions Escalate, Traders Eye Fed Pivot After Weak Data

A wave of geopolitical anxiety and macro uncertainty sent shockwaves through crypto markets on Thursday, even as U.S. equities brushed off the noise and closed modestly higher.

Bitcoin (BTC) dropped over 2.5% in the past 24 hours to around $105,900, while a broad altcoin pullback saw Ether (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) log losses between 5% and 7%. The sharpest declines came during early U.S. evening trading, as risk aversion spiked across digital assets.

Middle East Risks Resurface as Trump Warns of Conflict

Markets were rattled after President Trump raised the possibility of military conflict involving Iran. Speaking from the White House, Trump warned U.S. citizens in the region to evacuate, citing a heightened risk of hostilities as nuclear negotiations stall.

“Something could very well happen,” Trump said, referring to a potential Israeli strike. “We need to be prepared.”

The president also hinted at fresh tariff measures as July trade deadlines approach, further weighing on global risk sentiment.

Fed Pressure Builds as Economic Data Weakens

Amid the geopolitical noise, signs continue to build that the U.S. economy is slowing. Thursday’s Producer Price Index (PPI) came in below expectations, while initial jobless claims held steady at 248,000, matching last week’s multi-month high. Continuing claims rose for the third straight week to 1.956 million, the highest in over three years.

These data points added to growing speculation that the Federal Reserve may soon be forced to cut rates — despite a publicly hawkish stance.

President Trump, ramping up his campaign rhetoric, blasted Fed Chair Jerome Powell as a “numbskull”, threatening to “force something” if the central bank doesn’t act. While Powell’s term runs through 2026, the comments add political fuel to the dovish narrative taking shape.

Crypto Decouples from Stocks — For Now

While stock markets largely shrugged off the day’s headlines, crypto traders appeared less convinced. The sector’s sharp downturn reflects both its heightened sensitivity to global instability and the lack of immediate monetary easing.

Still, some analysts see this as a healthy reset after a multi-week rally, with on-chain metrics and ETF flows still showing underlying strength in Bitcoin and Ether.

As one trader put it in a Telegram chat: