Crypto Markets Shed $80 Billion as US Strikes on Iran Trigger Sharp Sell-Off

Crypto markets lost around $80 billion in value over the past 24 hours after fresh US military strikes on Iran increased global risk tension and pushed investors away from risk assets.

The sell-off intensified after reports that the US carried out another wave of strikes late Wednesday, targeting an Iranian military site and shooting down four Iranian drones near the Strait of Hormuz. A US official told the drones posed a threat and said the actions were “purely defensive” and aimed at maintaining an existing ceasefire.

Iran’s Islamic Revolutionary Guard Corps reportedly responded by attacking a US airbase in Kuwait, further escalating tensions in the region.

Bitcoin Falls to Lowest Level Since Mid-April

Bitcoin dropped 3.5% in a single day, falling to around $72,646 on Coinbase. This marks its lowest level since April 13 and comes after a brief rally earlier in the week when markets reacted to hopes of a possible peace deal.

The sudden reversal shows how quickly sentiment shifted after President Donald Trump said he was “not satisfied” with negotiations and hinted that further military action could follow.

Oil Rises as Investors Move Away From Risk Assets

The geopolitical escalation also impacted traditional markets. Crude oil prices rose around 3.5%, with WTI climbing above $90 per barrel and Brent reaching $98, as traders priced in potential supply risks linked to the Strait of Hormuz.

Analysts said the market reaction reflects rising geopolitical uncertainty, possible oil supply disruption, and a shift toward safer assets. They also noted that Bitcoin and other major cryptocurrencies continue to behave like high risk assets during periods of global tension, with leveraged positions getting quickly wiped out when volatility spikes.