Middle East Tensions Wipe $80 Billion From Crypto Market in 24 Hours

Middle East tensions wiped about $80 billion from the cryptocurrency market in a single day.

Cointelegraph reported on May 28 that total crypto market capitalization fell by about $80 billion over the previous 24 hours. The outlet said U.S. strikes on Iran pushed the market to its lowest level since mid-April.

The U.S. carried out additional strikes on Iranian military facilities on May 27. Reuters also reported that the U.S. said it had shot down four Iranian attack drones near the Strait of Hormuz that it considered a threat.

As geopolitical tensions surrounding Iran escalated again, Bitcoin fell nearly 3.9% from a day earlier and dropped below $73,000 on May 28. Ethereum also broke below the psychologically important $2,000 level.

Oil markets reacted immediately. After news of the additional U.S. strikes on Iran, Brent crude, the international benchmark, briefly rose to about $98 a barrel on May 28.

Nick Ruck, a director at LVRG Research, said broader geopolitical risks, the possibility of oil supply disruptions and demand for safe-haven assets triggered selling in the market. While Bitcoin and Ethereum retain a long-term narrative as hedge assets, he added, they still trade like high-beta risk assets when uncertainty rises.