Crypto markets lost $80 billion as escalating geopolitical tensions pushed Bitcoin below $73,000.
Cryptocurrency markets lost approximately $80 billion in total value over 24 hours, with losses accelerating after a fresh wave of military strikes intensified geopolitical tensions and pushed the total crypto market capitalization to its lowest point since mid-April.
New strikes were carried out late Wednesday in an exchange that a US official told Reuters posed a threat near the Strait of Hormuz. "These actions were measured, purely defensive, and intended to maintain the ceasefire," the US official told Reuters. The strikes came against the backdrop of ongoing negotiations to end a conflict that has been active since Feb. 28. US President Donald Trump said at a White House cabinet meeting on Wednesday that he was "not satisfied" with the deal and indicated further military action was possible.
Bitcoin (BTC) fell 3.5% on the day to $72,646, its lowest level since April 13. The decline reversed gains recorded earlier in the week, when Trump had hinted that a peace deal was near, briefly lifting broader crypto markets.
Ethereum (ETH) dropped more than 4%, falling below the $2,000 level to $1,976 at the time of reporting, its lowest point since late March. Crude oil markets also reacted sharply, with West Texas Intermediate rising 3.5% to top $92 per barrel and Brent climbing to $98.
Nick Ruck, director of LVRG Research, told Cointelegraph that investors moved to price in heightened geopolitical risk, potential oil supply disruptions, and a broader flight to safety. "Bitcoin and Ethereum, despite their long-term narrative as hedges, continue to behave more like high-beta risk assets during periods of uncertainty," Ruck said.
Ruck noted that traders are watching escalation risks and any downstream effects on inflation and Federal Reserve policy “as crypto liquidity quickly thins, and leveraged positions get flushed out.”
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