Bitcoin Hits Lowest Since April on Iran Airstrikes...Crypto Market Evaporates $80 Billion

▲ Bitcoin (BTC), cryptocurrency decline/AI generated image ©

Reports that the United States again launched airstrikes on Iran during peace negotiations caused $80 billion to evaporate from the cryptocurrency market in a single day, with Bitcoin and Ethereum once again revealing their nature as risk assets in the face of geopolitical risk.

According to Cointelegraph, a cryptocurrency specialized media outlet, on May 28 (local time), the total cryptocurrency market capitalization decreased by approximately $80 billion in the past 24 hours. Losses expanded as the U.S. carried out its second airstrike targeting Iran in three days, pushing the cryptocurrency market to its lowest level since mid-April.

Cointelegraph reported that U.S. forces carried out new airstrikes targeting Iranian military facilities late Wednesday and shot down four Iranian attack drones that posed a threat around the Strait of Hormuz. U.S. officials stated that the action was “a measured, purely defensive action intended to maintain the ceasefire.” The Iranian Revolutionary Guard Corps announced that it retaliated by attacking a U.S. airbase in Kuwait.

The airstrikes came during negotiations to end the war that began on February 28 with attacks by the United States and Israel. U.S. President Donald Trump said at a White House cabinet meeting on Wednesday that he was “not satisfied” with the agreement with Iran, hinting at the possibility of further military action. Previously, the cryptocurrency market had rebounded earlier this week after Trump mentioned that a peace agreement could be finalized soon, but it plunged again following reports of the new airstrikes.

Bitcoin (BTC) fell 3.5% on the day, dropping to $72,646 on Coinbase. This is its lowest level since April 13. Ethereum (ETH) also fell below the psychological support level of $2,000 after news of the airstrikes, dropping over 4% to $1,976. Cointelegraph reported that Ethereum is at its lowest level since late March.

Nick Ruck, Director of LVRG Research, told Cointelegraph that the market saw a sell-off as investors priced in escalating geopolitical risks, potential oil supply disruptions, and a preference for safe-haven assets. Ruck stated, “While Bitcoin and Ethereum have a long-term narrative as hedge assets, they still behave like high-beta risk assets during periods of increased uncertainty.” He added, “Traders are currently monitoring the risk of escalation in the Middle East, inflation, and its impact on Fed policy, and leveraged positions are being liquidated as cryptocurrency liquidity quickly thins out.”

Oil prices also reacted immediately. West Texas Intermediate (WTI) crude surpassed $92, and Brent crude rose to $98 per barrel. Cointelegraph reported that the U.S. airstrikes on Iran dragged the cryptocurrency market to its lowest level since mid-April, and Bitcoin and Ethereum could not escape their risk-asset trend during the geopolitical shock.

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