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Solana, ether, xrp lead majors slide as Iran strikes drive a broad risk selloff
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- DeepHorus
U.S. airstrikes on Iran triggered a broad risk-off selloff across global markets, with major cryptocurrencies leading the decline as traders shed their most volatile holdings first. The geopolitical shock sent traditional safe-havens like U.S. Treasury yields surging, while riskier assets faced immediate pressure.
The conflict escalated after the strikes, reigniting concerns over shipping through the critical Strait of Hormuz. This drove Brent crude oil prices above $95 per barrel. Simultaneously, the U.S. 10-year Treasury yield climbed to 4.81%, its highest level in approximately three years, as markets repriced inflation and growth expectations.
Within the crypto market, high-beta altcoins bore the brunt of the selling. Solana and Tron both fell more than 3% over 24 hours, with Solana slipping back to around $100 and Tron to roughly 32 cents. Bitcoin, considered a relatively safer crypto asset, declined a more modest 1% to approximately $77,500.
The performance gap highlights a classic risk-off rotation, where investors first reduce exposure to assets perceived as having higher volatility or less liquidity. Other major tokens like Ether and XRP also dropped nearly 2%, while BNB showed relative strength with a decline of under 1%.
The downturn was amplified by shifting expectations for U.S. monetary policy. Following Federal Reserve Chair Jerome Powell's comments at Jackson Hole, traders now price a 66% chance of a rate hike in September, up from 40% a week earlier. Higher interest rates typically increase the opportunity cost of holding non-yielding assets like cryptocurrencies.
Market analysts noted the selloff extended globally. Japanese and South Korean stock indices fell sharply, with Japan's 10-year government bond yield touching 3% for the first time in three decades. The broad-based nature of the decline suggests a fundamental repricing of risk rather than a crypto-specific event.
The immediate future for crypto markets may hinge on key economic data. Friday's August U.S. jobs report is critical; economists expect around 55,000 positions added. A strong report would reinforce the case for a rate hike, potentially keeping high-beta cryptocurrencies under pressure ahead of the Fed's mid-September decision.
