Bitcoin and Ethereum prices are still low this weekend, and there is a possibility that this will continue into the new week. There have been a number of developments in the crypto market lately that could deepen the already negative sentiment surrounding the crypto industry. With so Bitcoin and Ethereum are the most important digital assets in this area they could be the first to be hit by the wave of negative news coming out of the market.
The war between the US and Iran is far from over: Bitcoin and Ethereum prices could crash
In February 2026, the United States had attacked Iranian forces, leading to what is now known as the US-Iran War. Since then, tensions have remained high, financial markets have suffered severely and risky assets such as Bitcoin and Ethereum have not been left out.
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In the month following the first attack, there was a ceasefire. However, President Donald Trump completely dashed hopes for a ceasefire in his latest speech. According to one report from SoSoValue, this has now led to escalation instead of a solution.
With President Trump pushing aside the need for global oil and leaving the Strait of Hormuz to other countries, oil prices are expected to rise further during this period. In addition, there are expectations of interest rate increases, and this could negatively impact Bitcoin and Ethereum prices during this time.
Crypto market hit by new hack
With the move into the bear market and Bitcoin and Ethereum prices falling, attacks on the crypto market seemed to have subsided. That is, until now, when news of the DRIFT Protocol hack broke this weekend.
According to reports, the Solana Protocol had been targeted by North Korean threat actors, who ultimately succeeded. In just 12 minutes, these bad actors were able to infiltrate the Protocol’s wallets and rake in $285 million, with the attack attributed to the Lazarus Group.
Of course, the movement of liquidity out of the market remains a major problem, as Bitcoin and Ethereum already suffer from low liquidity. The DRIFT token also crashed 40% when the news broke, leaving the market in shock.
On-chain sleuth ZachXBT also went to X shout Circle for not trading while the USDC from the DRIFT attack was moved across more than 100 trades. The funds have since been moved from Solana to Ethereum, leaving users wondering what is being done to protect against these threat actors.
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Sentiment is falling towards record levels
Another factor that could lower Bitcoin and Ethereum prices is the fact that investors are still very hesitant to put money into the market. The Crypto Fear & Greed Index is currently is in the realm of Extreme Fearwhich marks a time of low liquidity and market participation.
If sentiment doesn’t start to improve and liquidity doesn’t flow back into the market, Bitcoin and Ethereum prices could continue to fall. This could trigger a cascading event where investors panic sell to limit their losses, leading to a sharp decline.
Featured image of Dall.E, chart from TradingView.com