Israeli Strikes Threaten Iran Peace Deal, Sending Crypto Markets into Tailspin

Crypto markets have taken a hit after the US and Iran signed a peace deal, which was seen as a positive development for risk assets. However, the agreement is now in jeopardy due to ongoing Israeli strikes in southern Lebanon, which has caused traders to sell their positions rather than trust the ceasefire.

The recent uptick in crypto prices, which saw Bitcoin push above $67,000, has been erased with the total market shedding roughly 4% in a day. XRP and Ethereum have also fallen within the same 3-4% range as risk assets are sold off due to concerns over the deal's stability.

Traders are wary of getting caught again after the last ceasefire collapsed in April, causing them to sell their positions now rather than waiting for a potential second collapse. The Federal Reserve's focus on inflation is also keeping pressure on cryptocurrencies, making it less likely that interest rate cuts will be implemented.