Sailor “Bitcoin, 0 or 1 million dollars”… shaken by Middle East risk [Decenter Market Status]

Bitcoin (BTC) is entering an adjustment phase, reducing its upward momentum due to geopolitical risks in the Middle East.

According to CoinMarketCap, a global virtual asset market tracking site, as of 8 AM, BTC recorded $108,313.76, down 1.43% from the previous day. Major altcoins are also declining. At the same time, Ethereum (ETH) dropped 1.74% to $2,761.04, XRP fell 1.96% to $2.260, and Solana (SOL) declined 2.93% to $159.76.



The domestic market shows a similar trend. Based on Bithumb, BTC is down 0.97% to 149,479,000 won. ETH dropped 2.49% to 3,801,000 won, XRP fell 2.32% to 3,118 won, and SOL declined 3.75% to 220,600 won.

Despite expectations of slowing inflation and progress in US-China negotiations, geopolitical uncertainties held back the market. The three major US stock indices closed lower on the 11th. The Dow Jones Industrial Average fell 1.10 points to 42,865.77, the S&P 500 dropped 16.57 points to 6,022.24, and the Nasdaq declined 99.11 points to 19,615.88.

The market was initially optimistic. Donald Trump posted on Truth Social that "all necessary rare earths will be supplied from China in advance" and indicated some export control relaxation in the US-China second trade negotiation. The two countries reportedly agreed on a framework for implementing the first trade agreement.

The May consumer price inflation rate coming in lower than expected also positively affected investor sentiment. The US Department of Labor announced that the May core Consumer Price Index (CPI) rose 2.8% year-on-year. This was at the April level and below the market expectation of 2.9%.

However, in the afternoon, heightened Middle Eastern tensions caused the market to turn downward. Reuters and AP reported that "the US government ordered non-essential personnel to evacuate the US Embassy in Iraq". Iran had previously warned that it could attack all US military bases in the Middle East if nuclear negotiations with the US break down.

Amid these mixed trends, the long-term bullish outlook for BTC continued. Michael Saylor, co-founder of MicroStrategy, said in a Bloomberg interview, "If BTC doesn't go to zero, it will reach $1 million" and "We have passed the crypto winter". Saylor added, "Miners supply about 450 BTC, worth around $50 million, to the market daily, and if these volumes are consistently bought, prices must rise". MicroStrategy is the world's largest publicly traded company holding BTC.

The Crypto Fear and Greed Index by alternative asset data analysis firm Alternative.me rose 1 point to 72, indicating a "greed" state. This index suggests market sentiment is constricted when closer to 0 and market overheating when closer to 100.

Reporter Do Ye-ri