Profit-taking, MidEast hostilities drag crypto lower after bullish week
Cryptocurrency markets experienced a downturn alongside global equities due to profit-taking and escalating hostilities between Iran and the U.S. over the Strait of Hormuz. Major assets and altcoins saw significant price drops as investors shifted away from riskier holdings.
Why it matters
Geopolitical instability in the Middle East is directly impacting global financial markets, including the volatile cryptocurrency sector.
That's a decline of about 1%. Steeper losses hit the altcoin market. Lighter (LIT) led the downside cascade, sliding 8% in its first major selloff since rallying by more than 200% over the past two months.
The exit from riskier assets was felt across equity markets, too. South Korea's Kospi index lost 9.2% as SK Hynix, the memory-chip maker that went public in the U.S. on Friday, slumped 15%. Japan's Nikkei and China's SSE both fell more than 2%.
The drops reflected reignited tensions in the Middle East as Iran and the U.S. fought over control of the Strait of Hormuz, with both nations firing airstrikes against each other.
U.S. equities are also indicated to open lower, with Nasdaq 100 index futures and S&P 500 futures losing 0.9% and 0.25% since midnight, respectively.
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