Crypto Markets Lose $80 Billion After New US Strikes on Iran
BITmarkets Team
May 29, 2026
According to Reuters, the US military launched additional strikes late Wednesday targeting an Iranian military facility and reportedly intercepted four Iranian attack drones near the Strait of Hormuz. A US official told Reuters the drones posed a threat in the region and described the operation by stating: “These actions were measured, purely defensive, and intended to maintain the ceasefire.”
Iran’s Islamic Revolutionary Guard Corps later reportedly said it had responded by attacking a US airbase in Kuwait. The latest developments came during ongoing negotiations aimed at ending the conflict that began on Feb. 28 following US and Israeli strikes.
Meanwhile, Donald Trump stated during a White House cabinet meeting that he was “not satisfied” with the proposed agreement with Iran, while also hinting at the possibility of additional military action.
Bitcoin and Ether fall sharply amid rising geopolitical risk
The renewed tensions pushed crypto markets to their lowest levels since mid-April, reversing gains recorded earlier in the week after Trump suggested a peace agreement could soon be finalized. Bitcoin declined approximately 3.5% on the day, falling to around $72,646 on Coinbase — its lowest level since April 13.
Nick Ruck of LVRG Research said investors reacted by pricing in increased geopolitical uncertainty, concerns over oil supply disruptions and a broader shift toward safer assets. “Bitcoin and Ethereum, despite their long-term narrative as hedges, continue to behave more like high-beta risk assets during periods of uncertainty,” he said. “Traders are now monitoring escalation risks in the Middle East, and any effects on inflation and Fed policy as crypto liquidity quickly thins, and leveraged positions get flushed out.”
Ether also moved lower after the reports, dropping more than 4% and falling below the psychologically significant $2,000 level to around $1,976 at the time of writing. The decline pushed Ether to its weakest level since late March.
Oil prices rise as markets monitor Strait of Hormuz risks
Traditional energy markets also reacted strongly to the escalating situation. US crude oil benchmark West Texas Intermediate rose around 3.5%, climbing above $92 per barrel. Meanwhile, Brent Crude advanced toward $98 per barrel.
The Strait of Hormuz remains one of the world’s most important oil shipping routes, and any disruption to traffic in the region could significantly impact global energy markets and inflation expectations. The renewed volatility across both crypto and traditional markets highlights how geopolitical tensions continue influencing investor sentiment, liquidity conditions and risk appetite across global financial assets.
Sources:
https://apnews.com/article/iran-us-war-oil-may-28-2026-8f5ed2813ba63df7ae9ccbe991688d29
https://cointelegraph.com/news/crypto-markets-tank-80b-as-us-carries-out-fresh-strikes-on-iran
https://www.tradingview.com/symbols/BTCUSD/?exchange=COINBASE
