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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InDigital asset markets reacted sharply as global uncertainty returned to the forefront, driving investors away from risk-on assets. U.S. Navy strikes against targets in Iran caused Bitcoin to drop, wiping out roughly $20 billion in market capitalization. Analysts warned of a range trap for Bitcoin as strong resistance builds near the $79,000 level, while CryptoQuant's 30-day apparent demand indicator has turned negative, signaling that buyers are failing to absorb available supply.
This decline comes as alternative assets face similar pressure, with Ethereum and other major tokens retreating alongside a spike in volatility. Per market data, this move brings Bitcoin back to levels seen prior to the recent rally, dampening hopes for a near-term breakout above the $80,000 psychological barrier. Compared to Gold, which typically acts as a safe haven during geopolitical strife, cryptocurrencies have shown extreme sensitivity to the latest military escalations.
Looking ahead, Bitcoin was hovering around $76,500 (at close May 26, 2026), with traders now watching support levels between $74,000 and $75,000 to prevent further downside. On the economic calendar, the market is awaiting the release of the FOMC Minutes on May 20, 2026, which could provide further clarity on monetary policy direction and its impact on crypto market liquidity.