Bitcoin and Ethereum Drop Amid Stagflation Concerns
Bitcoin and Ethereum Drop Amid Stagflation Concerns
📉 Crypto's Stagflation Blues
Bitcoin and Ethereum experienced significant declines, with BTC falling 7% below $100K and ETH down 14%. The drop is attributed to macroeconomic factors creating stagflation concerns:
- Rising oil prices
- Increasing inflation
- Stalled Federal Reserve rate cuts
This combination of economic pressures has led to a broader cryptocurrency market selloff. The situation mirrors similar market reactions from previous stagflation fears, particularly noting the April 2024 crypto market response to US economic indicators.
If you're wondering why $BTC is off 7% to break below $100K and why $ETH is cratering 14%, this is why: Oil ⬆️ Inflation ⬆️ Fed rate cuts stall = Stagflation Crypto prices ⬇️
NEW: Iran just responded to Trump's bombing raid by approving the closure of the Strait of Hormuz — a chokepoint where 1/5 of the world's oil flows Crypto prices are now tanking, stocks are likely to fall 📉 Here's why closing the Strait could become an economic disaster 🧵
Crypto Market Stabilizes Following US-Iran Military Action
The cryptocurrency market shows signs of stabilization after initial volatility triggered by US military strikes against Iran. This follows a pattern of geopolitical tensions impacting digital asset prices. Earlier market turbulence was observed during the Bybit exchange security incident, which coincided with Michael Saylor's continued Bitcoin acquisitions. Key points: - Markets recovering from geopolitical shock - Previous volatility linked to Bybit security concerns - Institutional buying continues despite uncertainty Follow [@JohnEDeaton1](https://twitter.com/JohnEDeaton1) for ongoing analysis.
JPMorgan's JPMD Launch and Do Kwon Context
JPMorgan has launched their digital token initiative JPMD, drawing attention and some lighthearted criticism for its medical-sounding name. The development comes amid ongoing discussions about the evolution of traditional banking in the digital asset space. For context on another significant industry story, a comprehensive background on Terra/LUNA founder Do Kwon is available in this [video breakdown](https://x.com/zGuz/status/1558851374619803649/video/1). Additional insights and analysis can be found in this [recent Space discussion](https://x.com/i/spaces/1jMJgmdprjWKL).
Do Kwon Pardon Odds and Trial Updates
Prediction markets have opened betting lines on the possibility of a Trump pardon for Terra founder Do Kwon, currently set at 7% on Kalshi. This development comes as the case faces significant changes, with the government's lead prosecutor recently resigning. A pre-trial conference is scheduled for June 25, marking the first such meeting since the prosecutorial change. Earlier this year, Do Kwon pleaded not guilty to fraud charges in his initial US court appearance. - Current pardon odds: 7% - Next court date: June 25 - Status: Awaiting pre-trial proceedings - Notable change: Lead prosecutor resignation
Stablecoin Market Growth Predictions and Treasury Impact Analysis
**Key Market Predictions:** - OnchainAustin forecasts stablecoin market to reach $500B-$1T - Treasury Secretary Bessent projects $2T treasury absorption by stablecoins **Current State:** - Top 5 stablecoins (USDT, USDC, BUSD, DAI, Tron) total ~$120B - Stablecoins emerging as significant US Treasury holders **Expert Analysis:** Vishal Gupta, founder of @truemarketsco, provides detailed breakdown in latest analysis video. [Watch full analysis on YouTube](https://youtu.be/sOo506Orxq4)