Crypto Market Weakness Linked to Geopolitical Tensions

The cryptocurrency market has experienced a significant downturn in recent weeks, with total market capitalization falling by 20.4% in the first quarter of 2026. According to data from Coingecko, this decline is attributed to increased global uncertainty, particularly in the Middle East region.

Market observer Ibrahim Assuaibi explained that cryptocurrencies are influenced by global fundamental factors similar to commodities such as gold. He noted that the failure to reach an agreement between the United States and Iran has contributed to rising oil prices and inflation, which has put pressure on risky assets like cryptocurrencies.

The impact of these developments is evident in the correction of various commodities, including gold and silver, not just cryptocurrencies. Assuaibi emphasized that the global nature of the crypto market makes its movement influenced by international dynamics, including those in Indonesia.