Iran Strikes Spark Broad Crypto Sell-Off Amid Rising Rate Expectations

The crypto market took a hit due to the recent US airstrikes on Iran, leading to a broad risk selloff. The major cryptocurrencies were not spared, with Solana and Tron experiencing losses of over 3% each. Bitcoin, however, only dropped by around 1%, indicating that traders may have cut their fastest-moving positions first.

Solana slipped back to about $100, while Tron fell to roughly 32 cents. Ether and XRP also declined by 2% each, reaching just above $2,414 and $1.35 respectively. Other cryptocurrencies such as Dogecoin and HYPE also lost value, with BNB being the most defensive of the group.

The macro trigger for this selloff was not a crypto-specific event but rather external factors such as oil prices and bond markets. Brent crude climbed above $95 as concern about shipping through the Strait of Hormuz revived. The US 10-year Treasury yield also touched 4.81%, its highest in three years.

Rate expectations are what turned this into pressure on crypto, with traders increasing their odds of a hike at the Federal Reserve's September meeting to 66%. This shift in Fed policy may have contributed to the decline in gold prices, which slipped to about $4,296 an ounce. Bitfinex analysts had predicted that bitcoin should consolidate or grind higher unless there was a pullback across all risk assets.