Bitcoin and Ethereum prices remain low after the weekend, and this trend could continue into the new week. Several recent developments in the crypto market may worsen the already negative sentiment, and as the leading digital assets, Bitcoin and Ethereum could be the first affected by the bad news.
US-Iran Tensions Continue to Weigh on Markets
Back in February 2026, the United States attacked Iranian military forces, sparking the ongoing US-Iran war. Since then, tensions have stayed high, hurting financial markets and risk assets like Bitcoin and Ethereum. Although there were ceasefire talks in the following month, President Donald Trump recently dismissed hopes for a truce. According to a report from SoSoValue, this pushes the situation toward escalation rather than resolution. With President Trump downplaying the need for global oil and leaving the Strait of Hormuz to other nations, oil prices are expected to rise. Combined with anticipated interest rate hikes, this could further pressure Bitcoin and Ethereum prices.
Another Hack Hits the Crypto Market
As the market turned bearish and Bitcoin and Ethereum prices fell, crypto attacks had seemed to slow—until news broke over the weekend about the DRIFT Protocol hack. Reports indicate that North Korean threat actors targeted the Solana-based protocol, successfully stealing $285 million in just 12 minutes. The attack has been attributed to the Lazarus Group. This outflow of liquidity is a major concern, especially since Bitcoin and Ethereum are already struggling with low liquidity. Following the news, the DRIFT token plummeted 40%, shocking the market. On-chain investigator ZachXBT also called out Circle on X for failing to act as the stolen USDC was moved across more than 100 transactions. The funds have since been transferred from Solana to Ethereum, raising questions about how to protect against such threats.
Market Sentiment Nears Record Lows
Another factor that could drive down Bitcoin and Ethereum prices is investors’ continued reluctance to enter the market. The Crypto Fear & Greed Index is currently in “Extreme Fear” territory, reflecting low liquidity and participation. If sentiment doesn’t improve and liquidity doesn’t return, prices could keep falling. This might trigger a cascade of panic selling as investors try to cut their losses, leading to a steep decline.
Frequently Asked Questions
Of course Here is a list of FAQs about why Bitcoin and Ethereum prices might continue to fall written in a natural tone with clear direct answers
Beginner General Questions
1 Why are Bitcoin and Ethereum dropping again this week
Several factors are combining including concerns about high inflation potential interest rate hikes from central banks and general uncertainty in the global economy
2 Is this a normal drop or is something seriously wrong
Sharp price swings are normal for cryptocurrencies which are known for their high volatility However the current drop is influenced by major macroeconomic forces making it a more significant marketwide downturn rather than an issue with just Bitcoin or Ethereum
3 Should I sell my Bitcoin and Ethereum now
This is a personal financial decision Selling during a drop locks in your losses Many investors choose to hold through downturns if they believe in the longterm potential Never invest money you cant afford to lose
4 How low could the price go
No one can predict the exact bottom Prices are set by market sentiment and fear can drive them lower than many expect Its important to focus on the reasons for the drop rather than guessing a specific price
5 Will everything in crypto go down if Bitcoin falls
Typically yes Bitcoin is considered the market leader When it falls sharply it often pulls down the entire crypto market including Ethereum and most altcoins This is known as market correlation
Intermediate CauseFocused Questions
6 What specific news is causing the selloff this week
Key triggers are strongerthanexpected economic data comments from Federal Reserve officials about continuing to fight inflation and potential regulatory concerns Also large investors selling can trigger more panic
7 What is macroeconomic pressure and how does it affect crypto
Macro refers to the bigpicture economy interest rates inflation and economic growth When central banks raise rates to fight inflation traditional investments like bonds become more appealing and money often flows out of riskier assets like stocks and crypto
8 Is the Merge for Ethereum not helping its price
The Merge was a massive successful upgrade for Ethereums technology However in the