Bitcoin, Ethereum, XRP, Dogecoin Tumble Amid Report Of Fresh US Strikes On Iran: Analyst Flags 'Structurally Fragile Setup' Developing For BTC

The U.S. military carries out new strikes overnight in Iran, targeting a military site and downing Iranian drones that threatened the Strait of Hormuz, Reuters reported, citing a U.S. official.

This came hours after President Donald Trump said that the Strait of Hormuz will be "open to everybody" and "nobody's going to control it."

Spot Vs. Derivatives Divergence

Blockchain analytics firm CryptoQuant highlighted a "structurally fragile setup" developing for Bitcoin, characterized by weak spot demand and bullish derivatives demand.

CryptoQuant noted an increase in Binance funding rates,indicating that traders are positioning long through leverage.

"From a market structure perspective, this often reflects late-stage speculative behavior: traders become optimistic after a recovery, long positioning increases, but actual capital participation fails to expand," CryptoQuant added.

Widely followed cryptocurrency analyst and trader Ali Martinez noted that Ethereum’s Market Value to Realized Value ratio dropping below the 0.8 band, currently at $1,868, has rarely been sustained for long.

These bands use statistical deviation from the Market Value to Realized Value ratio’s all-time average to identify potential market tops and bottoms.

"History shows that this exact zone represents a high-probability macro accumulation window that builds the ultimate foundation for the next major bull market," the analyst added.

Read Also: Oil Prices Sink On Iran Truce Optimism— But Wall Street Warns Hormuz Crisis Is Far From Over

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This article Bitcoin, Ethereum, XRP, Dogecoin Tumble Amid Report Of Fresh US Strikes On Iran: Analyst Flags 'Structurally Fragile Setup' Developing For BTC originally appeared on Benzinga.com

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