Crypto Market Stumbles in 2026 Amid Geopolitical Tensions and Interest Rate Hikes

The crypto market has been struggling in 2026 despite growing institutional adoption and clear regulations. Bitcoin ETFs have attracted billions of dollars, but investor sentiment remains cautious due to geopolitical tensions, rising inflation rates, and the Federal Reserve's policy decisions.

The US-Iran war has entered its sixth month without a resolution, causing investors to shift their holdings from digital assets to safer assets like gold. This has weighed on the crypto market, with Bitcoin trading at levels significantly lower than its all-time highs.

Ethereum has also failed to perform well in 2026, despite steady progress in global adoption. The ETH token is now trading below $2k, down from its peak of over $4k last year.