Middle East Tensions and Profit-Taking Weigh on Crypto Markets

The crypto market pulled back during Asian and European hours on Monday, with Bitcoin falling to $63,100 from above $64,300 at the weekly close. Altcoins faced steeper losses, with Lighter (LIT) dropping 8% after a two-month rally of over 200%.

Exit from Risk Assets Echoes Across Markets

Risk-off sentiment spilled into equity markets, with South Korea's Kospi index plunging 9.2% as SK Hynix shares slid 15%. Japan's Nikkei and China's SSE both fell over 2%, reflecting renewed tensions in the Middle East as Iran and the U.S. exchanged airstrikes over the Strait of Hormuz.

Surge in Trading Volumes

Centralized exchange (CEX) trading volumes rose for the first time in five months in June, with spot trading climbing 15.3% to $1.11 trillion and RWA perpetual volumes hitting a record $311 billion.

While markets process this profit-taking cycle, on-chain data and institutional flows (ETF inflows) remain supportive for core assets. Geopolitical risks in the Middle East may elevate short-term volatility, but could present opportunities for resilient digital assets.