Crypto Crashes Amid Middle East Tension

Crypto Crashes Amid Middle East Tension

Crypto crashed as geopolitical tensions in the Middle East spooked investors yesterday. Bitcoin initially climbed to $64,000 during European trading hours but quickly fell to $62,500 after reports surfaced of Iran preparing a missile attack against Israel. Further confirmation from the Israel Defense Forces (IDF) pushed BTC to $61,000, wiping out most gains seen after the US Feds interest rate cut.

By late afternoon, Bitcoin dipped further to just above $60,000, before recovering to $61,700. Other cryptocurrencies like Solana (SOL), Polkadot (DOT), and Avalanche (AVAX) saw 5%-10% drops. Meanwhile, gold surged 1% as investors sought safer assets, highlighting Bitcoin’s increasing correlation with risk-on assets like stocks rather than a safe haven like gold.

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Bitwise Files for The First Spot XRP ETF in the US

Bitwise has filed for a spot exchange-traded fund to provide investors with exposure to XRP, marking the first such filing in the US. Bitwise’s registration, submitted to Delaware’s Department of State, seeks to capitalize on investor interest despite XRP’s regulatory challenges. The US SEC has been locked in a legal battle with Ripple, which could pose key hurdles to the ETF’s approval.

Meanwhile, Grayscale has announced plans for an XRP "closed-end" fund, catering to accredited investors. Though the SEC has approved several spot Ethereum and Bitcoin ETFs earlier this year, the XRP filing stands on shakier ground due to ongoing legal scrutiny. Should it pass, the approval would mark a pivotal moment in the broader acceptance of XRP in traditional financial markets.

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Robinhood Now Allows Crypto Transfers in Europe

Robinhood has broadened its crypto offerings in the European Union, now allowing users to deposit and withdraw over 20 cryptocurrencies, including Bitcoin and Ethereum. This comes as part of the company’s ongoing expansion in Europe, driven by favorable regulations under the Markets in Crypto Assets (MiCA) framework.

In March, Robinhood fully launched its brokerage operations in the UK as part of a wider push into the region. With major US-based exchanges like Coinbase and Kraken also focusing on the EU, Robinhood’s new services are part of a broader strategy to compete in Europe’s growing crypto market. As MiCA regulations come into full effect, Robinhood is looking to capture market share.

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Base Lead Jesse Pollak Takes Over Coinbase Wallet

Jesse Pollak, the lead behind Coinbase’s Ethereum Layer 2 network Base, has been appointed to head Coinbase Wallet and will also join the company’s executive team. Pollak announced the news on Monday, emphasizing that both Base and Coinbase Wallet share the goal of making it easy to connect to Web3 apps. His leadership is expected to bring greater alignment between the two projects.

Launched in August 2023, Base has quickly risen to prominence, crossing $2.2 billion in total value locked. Pollak’s new role comes as Coinbase Wallet continues to expand its support for multiple blockchains beyond Ethereum, including Bitcoin and Solana. With this, Coinbase aims to further its mission of bringing more people on-chain and spurring broader blockchain adoption.

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Data of the Day

In the past 24 hours, over $524 million was liquidated as the market plunged, with long positions bearing the brunt at $451.08 million. Bitcoin and Ether saw the largest liquidations at $139.67 million and $111.10 million, while alts like SOL and SUI also took hits, losing $18.61 million and $10.5 million.

Binance led with $7.59 million in liquidations, followed by OKX at $4.38 million. Shorts weren't spared either, with $74.85 million wiped out across the market. The largest single liquidation order, worth $12.66 million, occurred on Binance’s BTC/USDT pair, underscoring the panic-driven sell-offs.

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More Breaking News

• Sean "Diddy" Combs hired Alexandra Shapiro, the same attorney representing FTX's Sam Bankman-Fried, in his lawsuit case.
• Ansem admitted to being more careful about endorsing celebrity-backed memecoins, citing misaligned incentives and the need for more discretion.
• An Indiana man pleaded guilty to cyber theft, stealing over $37 million in cryptocurrency from nearly 600 victims, funneling assets through mixing services.
• Tron founder Justin Sun received an $8.75 million airdrop from EigenLayer, as the platform lifted transfer restrictions on its EIGEN token for trading.
• Ethereum Layer 2 rollup, Arbitrum, surpassed 1 billion transactions since its 2021 launch, maintaining its lead over competitors Base and Optimism.
• Binance is now fully operational in Argentina after securing VASP registration, allowing users full access to its platform, both on mobile and web.

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