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As the Federal Reserve meeting looms and the U.S. officially engages in warfare, the next 24 hours hold crucial importance for cryptocurrencies. This year, cryptocurrencies have experienced a decline influenced by unexpected developments. Just as tariff issues seemed to be resolving, new concerns linked to active warfare are putting downward pressure on cryptocurrency values.
Future of Cryptocurrencies
Iran, one of the largest oil exporters, has suffered significant damage to its facilities. Although most of its sales are directed to China due to embargoes, the global oil supply disruption and potential for further conflict are driving oil prices up. This surge exacerbates already inflating global costs, which in turn decreases the likelihood of interest rate cuts by the U.S. and other central banks.
Cryptocurrencies continue to grapple with declines. Seen as akin to tech stocks, they suffer under uncertainty. The imminent announcement of the Federal Reserve’s interest rate decision, along with their 1-3 year projections and statements from Jerome Powell, is also contributing to market anxieties.
Quinten, however, views the current panic as an opportunity to buy at lower prices. Reflecting on past events, Bitcoin 
$106,035 fell drastically during moments of geopolitical tension, suggesting potential for gain in the aftermath.
“COVID Crash (March 2020): Bitcoin dropped to $3,850.
Russia-Ukraine Invasion (February 2022): Bitcoin fell to $34,300.
Israel-Palestine (October 7, 2023): Bitcoin declined to $27,500.
Short-term panic = long-term opportunity.”
Conversely, Poppe considers the drop ahead of the Fed meeting normal and anticipates a further decrease, emphasizing the importance of liquidity zones indicating potential reversals.
“Liquidity starts to be extracted from these areas, increasing likelihood of further decline. Yet, this is the area of interest for genuine reversal as liquidity originates here.
FOMC tomorrow – typically hits bottom the day before.”
Tariff Crisis and Expectations
Among cryptocurrency investors, the tariff issue remains a significant concern. New details from the Bank of Canada minutes suggest the tariff crisis might not persist. Following these revelations, Bitcoin’s price regained the $104,000 mark.
“Before the Bank of Canada’s interest rate decision on June 4, the board was encouraged by strong business investment growth in Q1, though it might be temporary.
Board members agreed on the reduced likelihood of a prolonged and severe global trade war.
They expect the boost in export growth to quickly diminish due to ongoing tariffs and uncertainty. Board members stated that underlying inflationary pressures may persist as consumers and businesses adapt to global trade restructuring, and agreed on potential cost increases from disruptions affecting goods price inflation, though concluded that the direct impact of retaliatory tariffs was not evident.”
