The financial landscape has been shaky due to increasing tensions between Israel and Iran, contributing to a downturn in stock markets. In light of these events, former President Trump dismissed the possibility of a ceasefire, expressing that Iran must capitulate entirely before any negotiations occur. Consequently, Bitcoin’s (BTC) price dipped to $105,000. What lies ahead for cryptocurrencies this week?
Anticipating the Crypto Downturn
As the G7 summit concluded earlier than expected, Trump missed interactions with representatives from Mexico and other nations. Meanwhile, Germany optimistically anticipates a resolution on import tariffs by the end of summer. The previously mentioned July 9 deadline set by Trump seems irrelevant now, and perhaps there will be a delay as was earlier hinted.
In the short term, what should be expected regarding cryptocurrencies? According to Poppe, a further drop in BTC below $105,000 may trigger a liquidation wave, leading to intensified selling. At the time of writing, Bitcoin’s price hovers just over $105,000.
“Bitcoin 
$104,463 has started to lose this level, making the likelihood of accelerated downward momentum very high. Dropping below $105,000 will trigger the liquidation process, initiating an even steeper decline. Although some may attribute this to Middle Eastern tensions, it seems like a routine correction before the FOMC meeting,” explained Poppe.
Liquidations and ETH Whales
If Bitcoin’s price exceeds $115,000, we could witness substantial short position liquidations. Crypto Lord commented that this could exceed $12 billion. Although such massive liquidations may not transpire due to set stops, any swift ascent could present attractive opportunities for market makers owing to its significant liquidation potential.
A third analyst, under the pseudonym Caff, suggests that substantial whale movements may serve as warnings. Recent data indicates that ETH whales, amidst a bearish environment, executed the most significant daily purchase since 2018. In one day, one million ETH was bought, an action last witnessed seven years ago.
Prior to geopolitical tensions, Ethereum (ETH) 
$2,509 aimed for the $3,000 mark. However, it now awaits market stabilization post-FOMC and a de-escalation of ongoing tensions.
