Cryptocurrency
markets faced significant headwinds today (Wednesday), 18 June, 2025, with
major digital assets including Bitcoin (BTC) experiencing widespread declines
amid mounting geopolitical tensions and macroeconomic uncertainty.

The total
cryptocurrency market capitalization dropped 1.6% to $3.28 trillion as
investors retreated from risk assets following escalating Middle East tensions
and policy uncertainty.

In this
article, we answer the question of why crypto is going down today, why Dogecoin
is falling for the fifth consecutive session, and what the outlook is for the
digital asset market.

Bitcoin
demonstrated relative stability compared to altcoins, declining 1.4% to trade
at $104,737. The world’s largest cryptocurrency has managed to hold above the
psychologically important $100,000 level despite facing pressure from multiple
fronts. Over the past week, Bitcoin has declined in six of seven trading
sessions, reflecting broader market caution.

The
cryptocurrency’s price action has been influenced by President Trump’s recent
comments regarding Iran’s supreme leader, which he described as an “easy
target,” sparking fresh geopolitical concerns. Bitcoin briefly dipped from
$104,310 to $103,553 following these remarks before recovering.

Technical
analysis suggests Bitcoin faces critical support at the $102,000 level.
Bitfinex analysts noted that “Bitcoin is still at risk of falling further,
and it must hold above $102,000 to stay on track for a potential rebound”.
Long-term holders remain relatively inactive, indicating no widespread
profit-taking despite recent volatility.

“Mirroring
the risk off mindset prevalent across markets, cryptocurrency prices were no
exception overnight. Geo-political issues around the Middle-East and threat of
escalation in one of the major oil producing regions has sent oil and bond
prices higher and risk assets like equities and crypto lower. We can expect to
see some consolidation until the political situation in the Middle-East calms
down and investors once again swing away from bonds,” Paul Howard, Director at Wincent, commented for FinanceMagnates.com.

Ethereum Faces Mounting
Selling Pressure

Ethereum (ETH)
experienced a sharper decline, falling 1.6% to $2,525. The second-largest
cryptocurrency by market capitalization has struggled to maintain momentum
above the $2,500 support level. Earlier in the session, Ethereum dropped as
much as 8% before paring losses.

The
cryptocurrency’s performance reflects broader altcoin weakness, with technical
indicators showing continued downward pressure. Ethereum’s decline comes
despite positive developments in the broader ecosystem, including continued
institutional interest and regulatory clarity around stablecoins.

Market
observers point to Ethereum’s correlation with risk assets as a key factor in
its recent underperformance. The token has been particularly sensitive to
macroeconomic developments and geopolitical tensions.

Ethereum
must defend the $2,500 level to prevent further deterioration, while XRP faces
resistance at $2.20 with potential downside targets around $2.10.

XRP Price Extends Losses
Amid Regulatory Uncertainty

XRP
suffered one of the steepest declines among major cryptocurrencies, falling
over 3% to $2.15. The Ripple-associated token has now declined nearly 9% for
the week, facing resistance at the $2.20 level.

High-volume
selling pressure dominated XRP trading, with the sharpest declines occurring
during peak trading hours. Technical analysis reveals a descending channel
pattern, suggesting continued bearish momentum unless buyers can reclaim key
resistance levels.

The token’s
weakness comes despite ongoing developments in Ripple’s ecosystem, including
the upcoming RLUSD stablecoin deployment and regulatory progress in Dubai and
Singapore markets.

Dogecoin Extends Losing
Streak to Fifth Consecutive Day

Dogecoin
(DOGE) continued its downward trajectory, falling 1.5% to $0.17, marking the
fifth consecutive day of declines. The meme-inspired cryptocurrency has been
particularly vulnerable to the current risk-off sentiment, dropping from $0.176
to $0.164 during the session’s most intense selling period.

The
cryptocurrency found support at the $0.164 level, forming what some analysts
view as a potential double bottom pattern. However, trading volume has declined
sharply as the market awaits clearer directional signals.

“What’s telling is the pressure on second-tier altcoins.
Look at the daily candles and monthly performance: XRP and SOL are down more
than 6%, while DOGE, SUI, ADA, and AVAX have dropped over 15%. This divergence
suggests a market that’s becoming more selective favoring large-cap resilience
while shedding riskier assets,” said Dr. Kirill Kretov from Coinpanel.

“That said, we have to remember: crypto market liquidity is still extremely
thin. Volatility remains tightly managed by larger players who continue to
extract profits by hunting unhedged or leveraged participants. The current
environment rewards caution and punishes overexposure especially outside the
majors.”

Why Is Crypto Going Down Today?

Geopolitical Tensions
Drive Risk-Off Sentiment

The primary
catalyst for the current market weakness stems from escalating tensions between
Israel and Iran. Rising oil prices and concerns about potential U.S.
involvement have prompted investors to reduce exposure to risk assets,
including cryptocurrencies.

Liquidations Amplify
Downward Pressure

Over $230
million in long cryptocurrency positions were liquidated in the past 12 hours,
according to Coinglass data. This forced selling has amplified downward
pressure across the market.

Iranian Exchange Hack
Compounds Market Pressure

Adding to
the cryptocurrency market’s woes, Iran’s largest digital asset exchange Nobitex
suffered a devastating cyberattack that drained approximately $82 million from
its wallets on June 18, 2025. The Israeli-linked hacking group “Gonjeshke
Darande” (Predatory Sparrow) claimed responsibility for the breach, moving
stolen funds through provocatively named wallet addresses containing
anti-Iranian messaging across multiple blockchain networks including Tron,
Bitcoin, Dogecoin, and Ethereum-compatible chains.

Stablecoin Regulation
Provides Long-term Optimism

Despite
near-term headwinds, the U.S. Senate’s passage of the GENIUS Act represents a
significant milestone for the cryptocurrency industry. The bipartisan
legislation establishes a regulatory framework for stablecoins backed by
Treasury bills and high-quality liquid assets.

How High Can Crypto Go? Market
Price Predictions and Recovery Prospects

Despite
current weakness, several factors support potential recovery scenarios. The
cryptocurrency market has historically demonstrated resilience following
geopolitical shocks, and institutional adoption continues to grow.

Related: How High Can Bitcoin Go? New BTC Price Predictions Point to $200K in 2025 and $1M Long Term

The passage
of stablecoin legislation could accelerate mainstream adoption by enabling
traditional companies to incorporate cryptocurrency payment systems. This
regulatory clarity represents a structural positive for the industry’s
long-term prospects.

However,
near-term volatility is likely to persist as markets navigate ongoing
geopolitical tensions and central bank policy decisions. The Federal Reserve’s
upcoming policy meeting and continued Middle East developments will be key
catalysts for market direction.