Solana, Ether and XRP Tumble as Iran Strikes Trigger Global Risk-Off Move

Major cryptocurrencies extended their declines over the past 24 hours, with higher-beta tokens taking significantly heavier losses than bitcoin as markets reacted to U.S. strikes on Iran.

The sell-off was uneven across the crypto market. Solana and Tron each fell more than 3%, while bitcoin declined about 1%, suggesting traders were reducing exposure to more volatile assets first while keeping relatively greater confidence in BTC.

Bitcoin was trading around $77,500 during Asian hours on Wednesday.

Solana fell back toward $100, while Tron slipped to roughly 32 cents, making them the weakest performers among the major tokens. Ether declined about 2% to slightly above $2,414, while XRP dropped nearly 2% to around $1.35. Dogecoin was down almost 2% at just over 8 cents, and HYPE fell more than 1% to approximately $83.

BNB showed the most resilience, losing less than 1% to trade around $687, according to CoinDesk data.

Despite the broader losses, all of these tokens had moved higher over the preceding hour as Asian stock markets suffered their sharpest declines, indicating that buyers were beginning to step back in even as traditional risk assets weakened.

Oil and Bonds Drive the Risk-Off Move

The catalyst came primarily from macro markets rather than crypto-specific developments. Brent crude rose above $95 as the U.S. strikes renewed concerns about shipping activity through the Strait of Hormuz. Meanwhile, the U.S. 10-year Treasury yield reached 4.81% overnight, its highest level in roughly three years.

Japanese government bonds also came under pressure. The five-year yield reached a record, while the 10-year yield touched 3% for the first time in about 30 years. Japanese equities fell more than 2%, while South Korea’s Kospi dropped over 3%.

Expectations for Federal Reserve policy are adding another layer of pressure to crypto markets. Traders using the CME FedWatch tool now see a 66% probability of a rate hike at the Fed’s September meeting, up from roughly 40% a week earlier. Fed Chair Kevin Warsh had used his Jackson Hole remarks to suggest that monetary policy may still not be sufficiently restrictive to bring inflation under control.

Gold also declined for a second consecutive session, falling to around $4,296 an ounce. The weakness in gold complicates the idea that investors are simply abandoning risky assets in favor of traditional stores of value.

Before the latest escalation, Bitfinex analysts had argued that bitcoin could continue consolidating or moving higher unless the broader risk-asset complex suffered a pullback severe enough to drag BTC down as well.

LMAX Group market strategist Joel Kruger said the next important upside zone for bitcoin remains around $80,000, followed by the May high near $82,820.

Jobs Data Could Shape September Outlook

The next major test could come with Friday’s U.S. jobs report. Economists expect payrolls to increase by about 55,000 following July’s decline of 23,000. Inflation data is scheduled for Sept. 11.

A stronger-than-expected employment report could reinforce expectations for a September rate hike, potentially keeping higher-beta cryptocurrencies under pressure. That could remain a concern heading into the Sept. 15 Clarity Act vote and the Federal Reserve’s policy decision the following day.

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