Crypto market cap sheds $80B in 24 hours amid US-Iran tensions

The total cryptocurrency market capitalization has fallen by approximately $80 billion in 24 hours, Cointelegraph reported. The sell-off was reportedly accelerated by a U.S. airstrike on Iran. According to the report, Nick Ruck, Director of Research at LVRG, analyzed that the downturn was driven by heightened geopolitical risks, concerns over crude oil supply disruptions, and a flight to safe-haven assets. He noted that while BTC and ETH have a long-term narrative as hedge assets, they still behave like risk assets during periods of increased uncertainty. Ruck added that the market is closely watching the risk of escalating conflict in the Middle East and its potential impact on inflation and Fed policy, leading to liquidations of leveraged positions as liquidity rapidly tightens.