Bitcoin and Ethereum prices continue to trend downward after the weekend, and there is a possibility that this will continue into the novel week. The cryptocurrency market has had a number of recent events that may deepen the already negative sentiment surrounding the crypto industry. So with Bitcoin and Ethereum are the most vital digital assets in space, they could be the first to be hit by a wave of negative news coming from the market.
The US-Iran war is not over yet: Bitcoin and Ethereum prices may fall
In February 2026, the United States attacked Iranian armed forces, leading to the so-called U.S.-Iran War. Since then, tensions have remained high and as a result, financial markets have suffered greatly and risky assets such as Bitcoin and Ethereum have not been left out.
In the month following the first attack, ceasefire talks took place. However, President Donald Trump completely dashed hopes for a ceasefire in his latest speech. According to A report on SoSoValue’s part, this has now pushed the matter towards escalation rather than resolution.
Since President Trump has rejected the need for global oil and left the Strait of Hormuz under the protection of other countries, oil prices are expected to rise during this time. Additionally, interest rates are expected to boost, which could negatively impact Bitcoin and Ethereum prices during this time.
Cryptocurrency market hit by another hack
As the bear market entered and prices of Bitcoin and Ethereum dropped, attacks on the cryptocurrency market seemed to snail-paced down. And that has been the case until now, when news of the DRIFT protocol hack broke out over the weekend.
North Korean threat groups were reportedly targeted by the Solana Protocol and ultimately succeeded. In just 12 minutes, these bad actors managed to infiltrate protocol wallets and loot $285 million, with the attack attributed to the Lazarus group.
Naturally, the outflow of liquidity from the market remains a major concern, given that Bitcoin and Ethereum are already suffering from low liquidity. The DRIFT token also crashed by 40% after the news broke, leaving the market in a state of shock.
Chain Detective ZachXBT also went to X call Circle for inaction when transferring USDC from a DRIFT attack between over 100 transactions. Funds have since been moved from Solana to Ethereum, leaving users wondering what is being done to protect against these threat actors.
The mood is dropping to record levels
Another factor that could lower Bitcoin and Ethereum prices is the fact that investors are still very cautious about putting money into the market. The Crypto Fear & Greed Index is currently sitting in Extreme Fear territorywhich means a time of low liquidity and market share.
If sentiment does not begin to improve and liquidity does not return to the market, Bitcoin and Ethereum prices may continue to decline. This can trigger a cascading event whereby investors panic and sell to cut losses, thus leading to a piercing decline.
Featured image from Dall.E, chart from TradingView.com
