Bitcoin and Ethereum prices are still trending lower after the weekend, and there is a possibility that this will continue into the new week. There have been a number of developments in the cryptocurrency market recently that could deepen the negative sentiment surrounding the cryptocurrency industry. And so on Bitcoin and Ethereum are two of the premier digital assets In this area, they may be affected first by the wave of negative news coming from the market.
The war between the United States and Iran is not over yet: Bitcoin and Ethereum prices may collapse
Back in February 2026, the United States attacked Iranian military forces, leading to this What is now known as the US-Iranian War. Since then, tensions have remained high, financial markets have suffered greatly as a result, and risky assets such as Bitcoin and Ethereum have not been left out.
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In the month following the initial attack, talks took place about a ceasefire. But President Donald Trump, in his last speech, completely dashed hopes for a ceasefire. According to A a report From SoSoValue, this has now pushed things towards escalation, rather than resolution.
With President Trump rejecting the need for global oil and leaving the Strait of Hormuz under the guard of other countries, Oil prices are expected to rise higher During this time. In addition, there are expectations of rising interest rates, which could negatively impact Bitcoin and Ethereum prices during this time.
The cryptocurrency market is experiencing another hack
With the transition into a bear market and the collapse of Bitcoin and Ethereum prices, attacks on the cryptocurrency market appear to have slowed down. That is, until now when DRIFT protocol hack news Broke over the weekend.
According to reports, the Solana Protocol was targeted by North Korean threat actors, who eventually succeeded. In just 12 minutes, these bad actors were able to infiltrate protocol wallets and escape with $285 million, with the attack attributed to the Lazarus Group.
Of course, off-market liquidity movement remains a major concern given that Bitcoin and Ethereum are already suffering from low liquidity. DRIFT also collapsed by 40% as soon as the news broke, leaving the market in a state of shock.
Detective ZachXBT also moved to X to call Circle of failure to act during USDC transfer from DRIFT attack across 100+ transactions. Funds have since been moved from Solana to Ethereum, leaving users wondering what is being done to protect against these threat actors.
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Emotions are falling towards record lows
Another factor that could cause Bitcoin and Ethereum prices to fall is the fact that investors are still very cautious about putting money into the market. The Cryptocurrency Fear and Greed Index is currently live Sitting in an area of extreme fearwhich represents a period of low liquidity and market participation.
If sentiment doesn’t start to improve and liquidity doesn’t flow back into the market, it will happen Bitcoin and Ethereum prices It could continue to decline. This may trigger a cascading event where investors resort to selling in order to cut losses, leading to a sharp decline.
Featured image from Dall.E, chart from TradingView.com
