Crypto market sheds $80 billion after U.S. strikes on Iran
Sell-off in digital assets came as U.S. stocks and futures weakened, oil rose about 2% on Strait of Hormuz supply concerns, and Donald Trump signaled further strikes while saying Israel was not involved.
The crypto market lost $80 billion after U.S. strikes on Iran, as broader risk assets also weakened amid escalating U.S.-Iran tensions, hotter May inflation and rising oil prices. Donald Trump said Israel was not involved in the U.S. strikes, while later reports said he signaled additional strikes and Axios reported a new round of U.S. military action. The episode was described as a risk-off shock that hit cryptocurrencies alongside stocks, with concern centered on possible disruption near the Strait of Hormuz, reinforcing warnings about crypto volatility, diversification and cautious risk management.
- Risk-off: A market move in which investors pull back from assets seen as riskier amid rising uncertainty or threats to growth.
- Strait of Hormuz: A narrow waterway that is one of the world's most important routes for seaborne oil exports.
- volatility: The speed and size of price swings