The cryptocurrency market lost $128 billion in one hour following Israel's airstrikes on Iran and U.S. military involvement. Bitcoin fell 3.8% to $63,038 before stabilizing near $64,000, while Ether declined 4.5% to $1,835. The total market capitalization slid to $2.38 trillion as geopolitical tensions escalated.
The crypto market experienced a sharp downturn on the day of the reported events, triggered by confirmed Israeli airstrikes on Iran. President Donald Trump announced U.S. forces had launched "major combat operations" in Iran, with explosions reported in multiple provinces, including central Tehran near the office of Supreme Leader Ali Khamenei. Israeli Defense Minister Israel Katz declared a national state of emergency in response. Iran's state media stated it would deliver a "crushing response" to the strikes.
This geopolitical escalation directly impacted digital assets. Bitcoin, which had previously peaked above $126,000 in October, dropped 3.8% to $63,038 before recovering slightly to around $64,000. Ether saw a steeper decline of 4.5%, reaching $1,835, and XRP fell 3.96%. The overall cryptocurrency market capitalization decreased to $2.38 trillion, reflecting a $128 billion wipeout in just one hour.
Market observers noted the sensitivity of crypto to global uncertainties, with Bitcoin now at a critical juncture following the recent peak. The events unfolded amid broader international tensions, though specific timelines for the strikes were not detailed beyond the immediate market reaction.
