“Trump’s Rhetoric on Iran Strikes Sparks Fears of Deeper Losses in Ether, Solana, and Other Leading Cryptos.”

Altcoins Falter as Middle East Tensions and Inflation Worries Shake Crypto Markets

Geopolitical jitters and persistent inflation fears are prompting crypto investors to shift toward safer assets, causing altcoins to slide while bitcoin stays relatively steady.

On Thursday, cryptocurrencies extended losses as concerns grew over potential U.S. military action against Iran and a stubborn inflation outlook highlighted by the Federal Reserve.

XRP, Cardano’s ADA, and Solana’s SOL all fell more than 1% in the past 24 hours. Dogecoin (DOGE) traded flat on the day but remains down over 10% for the week, erasing gains made earlier in June. Ether (ETH) slipped 0.7% to $2,426.63, wiping out its earlier advances from the week.

Despite the broader downturn, U.S. spot bitcoin exchange-traded funds (ETFs) attracted solid inflows, totaling $389 million on Wednesday. Spot ether ETFs also recorded $19 million in net inflows.

Markets remain on edge amid reports that U.S. officials are weighing direct strikes on Iran, while the Fed has flagged inflation as stickier than previously anticipated. Fed Chair Jerome Powell cautioned Wednesday that global conflicts and tariffs could complicate efforts to bring inflation under control. Although the Fed kept rates steady, Powell signaled that policymakers want more evidence before considering rate cuts.

Altcoins, viewed as riskier assets, are often the first casualties in periods of heightened macroeconomic uncertainty.

Bitcoin, meanwhile, continues to trade sideways around $104,000. It has gained 13% year-to-date, fueled by ETF enthusiasm and dollar weakness, but has yet to assert itself decisively as either a safe-haven or risk asset this week.

“Bitcoin seems stuck between two worlds,” said Alex Kuptsikevich, analyst at FxPro. “It’s not reacting to growing risk appetite, nor is it surging like gold in times of geopolitical turmoil.”