In today’s crypto news update, the market turned red again after fresh geopolitical tensions rattled investors. Bitcoin briefly fell below $77,000, while XRP and other major altcoins also recorded steep losses.
The latest market decline followed new threats against Iran from U.S. President Donald Trump. Traders quickly moved away from risky assets as fears of a wider conflict returned to the market.
Bitcoin Falls Below $77,000 Amid Rising Fear
CoinMarketCap data shows that Bitcoin slipped below $77,000 on Sunday night, just days after surging to the $82,000 region. The sudden decline came shortly after U.S. President Donald Trump issued a fresh threat against Iran in a Truth Social post.
Trump warned that Iran could face the full wrath of the U.S. military if it continues delaying a peace agreement. The statement quickly sparked concerns about another escalation in the Middle East conflict. It is worth noting that the United States and Iran agreed to a temporary truce on April 8.
Negotiations reportedly began four days later. However, both sides have failed to reach a mutual agreement to permanently end the war. Meanwhile, amid fears of another escalation, the Bitcoin Fear and Greed Index dropped to 28, indicating a fear-based sentiment. The reading signaled growing market uncertainty and investor panic.
Further data from CoinGlass showed that more than $5.33 million in Bitcoin long positions were liquidated over the past 24 hours as volatility intensified across the crypto market. SoSoValue data also showed that spot Bitcoin ETFs recorded more than $1 billion in weekly net outflows, ending several consecutive weeks of positive inflows. The development added further selling pressure on Bitcoin and weakened overall market sentiment.
XRP Slips Below Key Support Despite Bullish Signal
XRP, which currently ranks as the fifth-largest cryptocurrency, also followed Bitcoin’s downward trend, dipping over the past 24 hours alongside other top altcoins. Interestingly, XRP slipped below the important $1.40 support zone during the market decline.
However, its Chaikin Money Flow indicator has reportedly flipped bullish, signaling renewed liquidity inflows into the asset. As a result, some analysts believe XRP could rebound and reclaim the $1.44 region in the coming days if buying pressure returns. However, XRP would first need to reclaim the $1.40 level or risk another pullback toward the $1.34 support zone.
Meanwhile, despite the recent correction, bullish sentiment surrounding the XRP Ledger ecosystem remains active. XRPL is set to activate its latest network upgrade by May 27, 2026. The upcoming upgrade is expected to introduce crucial fixes to vault withdrawals, authorized domains, and several other important ecosystem features.
Oil Surge Adds Pressure on Crypto Market
Crypto traders are now watching for further updates surrounding U.S.-Iran negotiations. Any additional escalation could trigger another round of selling pressure across financial markets. Amid the potential re-escalation of the U.S.-Iran conflict, Brent crude oil jumped 1.78% to $111.2, while WTI crude oil climbed 2.2% to $107.7.
According to BTSE COO Jeff Mei, traders are increasingly worried that elevated oil prices and persistent inflation could force the Federal Reserve to maintain aggressive interest rate policies. Higher rates typically pressure risky assets, including cryptocurrencies. Meanwhile, CNBC recently reported that oil-driven inflation fears have already triggered a major sell-off in government bonds.
The development further weakened investor confidence across broader financial markets. Several analysts now believe Bitcoin could retest lower support levels if geopolitical tensions continue rising. Some traders are currently monitoring the $74,000 region as the next major support zone for the leading cryptocurrency.
Josiah Oluwadare
The CoinRemark Team
