Cryptocurrency markets lost about $80 billion in value over the past 24 hours after the US carried out a new wave of military strikes on Iran.
The US military struck an Iranian military site and shot down four Iranian attack drones near the Strait of Hormuz late Wednesday. A US official called the actions "measured, purely defensive, and intended to maintain the ceasefire." Iran's Islamic Revolutionary Guard Corps retaliated by attacking a US airbase in Kuwait.
The strikes occurred during ongoing negotiations to end the war that began February 28. President Donald Trump said he was "not satisfied" with a deal and alluded to further military action.
Bitcoin fell 3.5% to $72,646 on Coinbase, its lowest level since April 13. Ether dropped 4% below $2,000. Crude oil prices rose 3.5% with WTI topping $92 per barrel.
LVRG Research director Nick Ruck said markets sold off as investors priced in geopolitical risk, potential oil supply disruptions, and a flight to safety. He noted Bitcoin and Ethereum continue to behave as high-beta risk assets during uncertainty.