Why Is Crypto Going Down? Bitcoin, Ethereum, XRP and Dogecoin Prices Lead Sell‑Off Amid Iran–Israel Escalation Fears ⋅ Crypto World Echo

Cryptocurrencymarkets faced significant headwinds today (Wednesday), 18 June, 2025, withmajor digital assets including Bitcoin (BTC) experiencing widespread declinesamid mounting geopolitical tensions and macroeconomic uncertainty.

The totalcryptocurrency market capitalization dropped 1.6% to $3.28 trillion asinvestors retreated from risk assets following escalating Middle East tensionsand policy uncertainty.

In thisarticle, we answer the question of why crypto is going down today, why Dogecoinis falling for the fifth consecutive session, and what the outlook is for thedigital asset market.

Bitcoin Price MaintainsResilience Above $100,000 Despite Pressure

Bitcoindemonstrated relative stability compared to altcoins, declining 1.4% to tradeat $104,737. The world’s largest cryptocurrency has managed to hold above thepsychologically important $100,000 level despite facing pressure from multiplefronts. Over the past week, Bitcoin has declined in six of seven tradingsessions, reflecting broader market caution.

Thecryptocurrency’s price action has been influenced by President Trump’s recentcomments regarding Iran’s supreme leader, which he described as an “easytarget,” sparking fresh geopolitical concerns. Bitcoin briefly dipped from$104,310 to $103,553 following these remarks before recovering.

Technicalanalysis suggests Bitcoin faces critical support at the $102,000 level.Bitfinex analysts noted that “Bitcoin is still at risk of falling further,and it must hold above $102,000 to stay on track for a potential rebound”.Long-term holders remain relatively inactive, indicating no widespreadprofit-taking despite recent volatility.

“Mirroringthe risk off mindset prevalent across markets, cryptocurrency prices were noexception overnight. Geo-political issues around the Middle-East and threat ofescalation in one of the major oil producing regions has sent oil and bondprices higher and risk assets like equities and crypto lower. We can expect tosee some consolidation until the political situation in the Middle-East calmsdown and investors once again swing away from bonds,” Paul Howard, Director at Wincent, commented for FinanceMagnates.com.

Ethereum Faces MountingSelling Pressure

Ethereum (ETH)experienced a sharper decline, falling 1.6% to $2,525. The second-largestcryptocurrency by market capitalization has struggled to maintain momentumabove the $2,500 support level. Earlier in the session, Ethereum dropped asmuch as 8% before paring losses.

Thecryptocurrency’s performance reflects broader altcoin weakness, with technicalindicators showing continued downward pressure. Ethereum’s decline comesdespite positive developments in the broader ecosystem, including continuedinstitutional interest and regulatory clarity around stablecoins.

Marketobservers point to Ethereum’s correlation with risk assets as a key factor inits recent underperformance. The token has been particularly sensitive tomacroeconomic developments and geopolitical tensions.

Ethereummust defend the $2,500 level to prevent further deterioration, while XRP facesresistance at $2.20 with potential downside targets around $2.10.

XRP Price Extends LossesAmid Regulatory Uncertainty

XRPsuffered one of the steepest declines among major cryptocurrencies, fallingover 3% to $2.15. The Ripple-associated token has now declined nearly 9% forthe week, facing resistance at the $2.20 level.

High-volumeselling pressure dominated XRP trading, with the sharpest declines occurringduring peak trading hours. Technical analysis reveals a descending channelpattern, suggesting continued bearish momentum unless buyers can reclaim keyresistance levels.

The token’sweakness comes despite ongoing developments in Ripple’s ecosystem, includingthe upcoming RLUSD stablecoin deployment and regulatory progress in Dubai andSingapore markets.

Dogecoin Extends LosingStreak to Fifth Consecutive Day

Dogecoin(DOGE) continued its downward trajectory, falling 1.5% to $0.17, marking thefifth consecutive day of declines. The meme-inspired cryptocurrency has beenparticularly vulnerable to the current risk-off sentiment, dropping from $0.176to $0.164 during the session’s most intense selling period.

Thecryptocurrency found support at the $0.164 level, forming what some analystsview as a potential double bottom pattern. However, trading volume has declinedsharply as the market awaits clearer directional signals.

“What’s telling is the pressure on second-tier altcoins.Look at the daily candles and monthly performance: XRP and SOL are down morethan 6%, while DOGE, SUI, ADA, and AVAX have dropped over 15%. This divergencesuggests a market that’s becoming more selective favoring large-cap resiliencewhile shedding riskier assets,” said Dr. Kirill Kretov from Coinpanel.”That said, we have to remember: crypto market liquidity is still extremelythin. Volatility remains tightly managed by larger players who continue toextract profits by hunting unhedged or leveraged participants. The currentenvironment rewards caution and punishes overexposure especially outside themajors.”

Why Is Crypto Going Down Today?

Geopolitical TensionsDrive Risk-Off Sentiment

The primarycatalyst for the current market weakness stems from escalating tensions betweenIsrael and Iran. Rising oil prices and concerns about potential U.S.involvement have prompted investors to reduce exposure to risk assets,including cryptocurrencies.

Liquidations AmplifyDownward Pressure

Over $230million in long cryptocurrency positions were liquidated in the past 12 hours,according to Coinglass data. This forced selling has amplified downwardpressure across the market.

Iranian Exchange HackCompounds Market Pressure

Adding tothe cryptocurrency market’s woes, Iran’s largest digital asset exchange Nobitexsuffered a devastating cyberattack that drained approximately $82 million fromits wallets on June 18, 2025. The Israeli-linked hacking group “GonjeshkeDarande” (Predatory Sparrow) claimed responsibility for the breach, movingstolen funds through provocatively named wallet addresses containinganti-Iranian messaging across multiple blockchain networks including Tron,Bitcoin, Dogecoin, and Ethereum-compatible chains.

Stablecoin RegulationProvides Long-term Optimism

Despitenear-term headwinds, the U.S. Senate’s passage of the GENIUS Act represents asignificant milestone for the cryptocurrency industry. The bipartisanlegislation establishes a regulatory framework for stablecoins backed byTreasury bills and high-quality liquid assets.

How High Can Crypto Go? MarketPrice Predictions and Recovery Prospects

Despitecurrent weakness, several factors support potential recovery scenarios. Thecryptocurrency market has historically demonstrated resilience followinggeopolitical shocks, and institutional adoption continues to grow.

Related: How High Can Bitcoin Go? New BTC Price Predictions Point to $200K in 2025 and $1M Long Term

The passageof stablecoin legislation could accelerate mainstream adoption by enablingtraditional companies to incorporate cryptocurrency payment systems. Thisregulatory clarity represents a structural positive for the industry’slong-term prospects.

However,near-term volatility is likely to persist as markets navigate ongoinggeopolitical tensions and central bank policy decisions. The Federal Reserve’supcoming policy meeting and continued Middle East developments will be keycatalysts for market direction.

This article was written by Damian Chmiel at www.financemagnates.com.