Cryptocurrencies saw a decline on Thursday, with selling accelerating in the early U.S. evening hours.
Bitcoin
fell more than 2.5% over the past 24 hours to $105,900, but altcoins experienced sharper drops, including ether, solana, XRP, and dogecoin, which fell between 5%-7%.
Risk assets overall struggled on Thursday as President Trump signaled the possibility of renewed tariff measures with the early July deadline for trade deals approaching.
Moreover, stalled nuclear negotiations with Iran raised concerns over potential Israeli strikes on Iranian nuclear sites.
“There’s a chance of massive conflict,” Trump stated at a press conference. “We have many American citizens in this area, and I’ve advised them to get out because something could happen soon, and I want to provide a warning before missiles begin flying.”
“I don’t want to say imminent, but it seems very likely,” he commented regarding Israel potentially striking Iran and mentioned he had advised against such an action while negotiations were still in progress.
While U.S. stocks managed to end the day with modest gains despite these headlines, cryptocurrencies remained under pressure.
Green shoots?
The recent rally in risk assets, including cryptocurrency, has taken place amid a U.S. Federal Reserve that appears steadfast in maintaining its current monetary policy for the foreseeable future.
Yet, signs are emerging that weak economic data may prompt a shift in the Fed’s approach—evidenced by slower employment growth and weaker inflation figures. On Thursday, two new data points emerged from May’s Producer Price Index, which fell short of expectations on both the headline and core metrics, alongside initial jobless claims that unexpectedly aligned with last week’s multi-month high of 248,000.
Continuing jobless claims rose to 1.956 million, marking the third consecutive increase and the highest level since November 2021.
President Trump also persistently urged Fed Chair Jerome Powell to adopt a more dovish stance, labeling him a “numbskull” for not lowering rates. “I may have to force something,” he remarked. Powell’s tenure as Fed chairman does not conclude until 2026, and Trump had previously indicated that dismissing him before then was not a consideration.
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