The cryptocurrency market is experiencing a significant downturn today, with the global market cap plummeting by 4.32% to $3.25 trillion. This decline has affected major cryptocurrencies like Bitcoin, Ethereum, XRP, and Solana, with notable losses observed across the board. Bitcoin stands below $104,000 at present, while support levels near $101,000 to $102,000 are in place. Ethereum (ETH) has dropped over 9% in the past 24 hours, plummeting to approximately $2,501. XRP also suffered losses exceeding 5%, trading at $2.11. Popular altcoins like Solana (SOL) and Dogecoin (DOGE) are not spared either, with SOL down more than 10% while DOGE has fallen by nearly 9%. Even large-cap tokens like Binance Coin (BNB) and Cardano (ADA) have experienced losses of 2.89% and 8.6% respectively. Geopolitical tensions are a major driver behind today’s market decline. The escalation of Middle East tensions, with Israel launching an airstrike on Iran’s nuclear facilities on June 13th, has caused global markets to react nervously, with investors seeking refuge in safer assets like gold. This trend is familiar as historically, cryptocurrencies have often experienced declines when unrest occurs in the Middle East, much like the 2020 market reactions during the US-Iran conflict. Economic pressures are also playing a role, with U.S. Treasury Secretary Janet Yellen warning of potential inflation spikes caused by former President Trump’s proposed tariffs. This could lead to prolonged higher interest rates set by the Federal Reserve, which negatively impacts risk assets like cryptocurrencies. Additionally, Coinbase’s recent launch of CFTC-compliant perpetual futures contracts has reduced short-term liquidity available in spot markets, further contributing to today’s market decline. The upcoming interest rate decision, scheduled in a few days, is expected to have a significant impact on the market’s trajectory. While there’s a 99% chance rates will remain unchanged, investors are hoping for a more confident outlook from Fed Chair Jerome Powell regarding future economic stability. If not, and if the Fed remains with its “wait-and-see” approach, the market might continue to hold on to weak levels.