Cryptocurrency Market Faces Late-Day Selloff, Bitcoin Dips Below $106,000
June 12, 2025 – The cryptocurrency market experienced a significant downturn late Thursday, culminating in Bitcoin (BTC) prices dropping below the $106,000 threshold. This decline came amidst a backdrop of troubling macroeconomic news, particularly relating to geopolitical tensions in the Middle East and threats of renewed tariffs from former President Donald Trump.
Bitcoin and Altcoins in Decline
In the early hours of Thursday, Bitcoin traded above $108,000 but began to lose ground as the day progressed. By late evening, the cryptocurrency was reported at approximately $105,978.29, marking a reduction of over 2.5% within a 24-hour period. This downturn was not isolated, as many altcoins also experienced steep declines; for example, Ethereum (ETH) fell by nearly 5%, Solana (SOL) dropped approximately 5.5%, while both XRP and Dogecoin (DOGE) recorded losses in the range of 5% to 7%.
The broader cryptocurrency market followed suit, with most major cryptocurrencies showing a downward trajectory as the U.S. trading day drew to a close.
Geopolitical Tensions and Economic Indicators
The late-day selloff followed an unsettling news cycle that included President Trump’s renewed threats concerning potential tariffs, coinciding with increasing tensions surrounding nuclear negotiations with Iran. "There’s a chance of massive conflict," Trump stated during a White House address, urging U.S. citizens in the region to evacuate as the situation could escalate quickly.
Despite the negative news, U.S. stocks responded positively, closing with modest gains, a trend that was not mirrored in the cryptocurrency market. Analysts suggest that while traditional markets may have absorbed these macroeconomic pressures, cryptocurrencies remain more volatile and sensitive to global geopolitical developments.
Economic Data Adds to Market Uncertainty
Market reactions were compounded by the release of weaker-than-expected economic data, including the Producer Price Index for May, which showed slower growth than anticipated. Additionally, initial jobless claims rose unexpectedly to 248,000, highlighting a worrying trend in the labor market.
Continuing jobless claims also hit a multi-month high, climbing to 1.956 million. This signals a potential cooling in the labor market, which could pressure the Federal Reserve to reconsider its current monetary policy stance.
Current Market Sentiment
As the marketplace reacted to the dual pressures of geopolitical unrest and economic uncertainty, sentiments surrounding cryptocurrencies remained cautious. Experts note that while the recent bullish trends in crypto might indicate resilience, the possibility of deeper pullbacks looms, particularly in light of ongoing tensions and economic trends.
As financial analysts continue to monitor both the crypto market and broader economic indicators, industry participants remain vigilant, adapting strategies in an increasingly complex financial landscape.
For ongoing updates in the cryptocurrency space and to keep abreast of the latest market trends, audiences can subscribe to market reviews and insights available from various finance news outlets.
About the Authors
Tom Carreras focuses on markets, bitcoin mining, and crypto adoption in Latin America. He holds a degree from McGill University and is based in Costa Rica.
Stephen Alpher serves as the managing editor for CoinDesk’s marketplace coverage, previously holding a similar position at Seeking Alpha. He is a finance major from the University of Pennsylvania’s Wharton School.
As events develop, investors are advised to approach market trends with careful consideration to protect their interests amid fluctuating conditions.
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