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The cryptocurrency market has once again fallen into a state of fear, with over $80 billion evaporating in a single day. Following news of additional U.S. military attacks on Iran, Bitcoin plummeted below $73,000, and Ethereum collapsed below the $2,000 mark.
According to investment media FXStreet on May 28 (local time), the cryptocurrency market's total market capitalization decreased by approximately $80 billion in one day as the U.S. carried out additional airstrikes targeting Iranian military facilities. The overall market fell to its lowest level since mid-April, and analysis suggests that investors' risk aversion sentiment has intensified sharply.
According to Reuters, the U.S. launched airstrikes on Iranian military facilities and shot down four attack drones in response to threats near the Strait of Hormuz. While U.S. government officials described the action as a “defensive response to maintain a ceasefire,” Iran's Islamic Revolutionary Guard Corps (IRGC) reportedly retaliated immediately by attacking a U.S. military base in Kuwait. U.S. President Donald Trump also stated at the White House that day that he was not satisfied with negotiations with Iran, hinting at the possibility of further military action.
The market shock was immediately reflected. Bitcoin (BTC) fell 3.5% in one day, dropping to $72,646 on Coinbase, its lowest level since April 13. Nick Ruck, director at investment firm LVRG Research, analyzed that investors are strengthening their preference for safe-haven assets, reflecting expanded geopolitical risks in the Middle East and potential disruptions to oil supply. He commented, “While Bitcoin and Ethereum have a long-term narrative as hedge assets, they still behave like high-risk assets in times of uncertainty.”
Ethereum (ETH) also broke below the psychological support level of $2,000. ETH fell over 4% to $1,976 that day, marking its lowest level since late March. Market analysis suggests that as cryptocurrency liquidity rapidly decreases, leveraged positions are being liquidated, and the Federal Reserve's future policies and inflation's impact are also weighing on investor sentiment.
Meanwhile, international oil prices surged. West Texas Intermediate (WTI) crude surpassed $92 per barrel, and Brent crude rose to $98. The market continues to warn that if tensions in the Middle East are prolonged, volatility across all risk assets could further expand.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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