Bitcoin and Ethereum prices are still low at the end of the weekend, and it is possible that this will continue into this new week. A number of developments have hit the crypto market recently that could worsen the already negative sentiment surrounding the crypto industry. So, with Bitcoin and Ethereum being the leading digital assets in the sector, they could be the first to be hit by the wave of negative news coming from the market.
The US-Iran war is far from over: Bitcoin and Ethereum prices could collapse
In February 2026, the United States attacked Iranian military forces, triggering what is now known as the US-Iran War. Since then, tensions have remained high, financial markets have suffered greatly and risky assets like Bitcoin and Ethereum have not been left behind.
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In the month following the initial attack, there were discussions about a ceasefire. However, President Donald Trump, in his latest speech, completely dashed hopes for a ceasefire. According to a report from SoSoValue, this has now pushed things towards escalation rather than resolution.
As President Trump rejects the need for global oil and lets the Strait of Hormuz be guarded by other countries, oil prices are expected to rise during this time. Additionally, interest rate hikes are expected, which could negatively impact Bitcoin and Ethereum prices during this period.
Crypto market hit by another hack
With Bitcoin and Ethereum entering the bear market and falling prices, attacks on the crypto market appear to have slowed down. It was until now that news of the DRIFT protocol hack broke over the weekend.
According to reports, the Solana Protocol was targeted by North Korean threat actors, who were ultimately successful. In just 12 minutes, these bad actors managed to infiltrate the protocols’ wallets and pocket $285 million, with the attack attributed to the Lazarus Group.
Naturally, the movement of liquidity out of the market remains a major concern given that Bitcoin and Ethereum already suffer from low liquidity. The DRIFT token also crashed 40% once the news was announced, leaving the market in shock.
On-chain sleuth, ZachXBT, also took to The funds have since been moved from Solana to Ethereum, leaving users wondering what is being done to protect against these malicious actors.
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Sentiment falls to record levels
Another factor that could push down the prices of Bitcoin and Ethereum is the fact that investors are still very hesitant to put money into the market. The Crypto Fear & Greed Index is currently in Extreme Fear territory, marking a period of low liquidity and low market participation.
If sentiment does not begin to improve and liquidity returns to the market, Bitcoin and Ethereum prices could continue to fall. This could trigger a cascading event in which investors panic sell in order to cut losses, leading to a sharp decline.
Featured image of Dall.E, chart by TradingView.com
