Investors flee risk assets amid geopolitical escalation, pushing BTC and ETH to multi-month lows below key levels.
Cryptocurrency markets erased $80 billion in value after US strikes on Iran heightened geopolitical risks, triggering a flight to safety. Bitcoin and Ether, typically touted as hedges, acted as high-beta risk assets amid thinning liquidity and forced liquidations of leveraged positions.
Ether plunged below the $2,000 mark, hitting $1,976—its lowest since late March. Bitcoin followed, extending losses as traders assessed potential oil supply disruptions and inflationary pressures. WTI crude surged 3.5% to $92, while Brent neared $98 per barrel.
The selloff reflects broader market concerns over Middle East instability and its impact on Federal Reserve policy, with investors monitoring escalation risks closely.