Crypto Market Slides After U.S. Strikes Iran, $930M Wiped Out in Liquidations

Highlights:

• U.S. strikes on Iranian targets raised fresh uncertainty around already fragile peace talks.
• Bitcoin and Ethereum fell sharply as traders reduced exposure to risky crypto assets.
• Crypto liquidations topped $930 million, with long traders suffering the biggest market losses.

The crypto market came under fresh pressure after the United States launched new strikes on Iranian targets on Thursday. According to Reuters, the U.S. military hit a site in Bandar Abbas and also shot down four Iranian one-way attack drones near the Strait of Hormuz. Later, Iran’s Islamic Revolutionary Guard Corps (IRGC) said it had targeted a U.S. airbase in response, raising concerns that the situation could escalate further.

🚨BREAKING: U.S. AND IRAN ARE NOW TRADING AIRSRIKES

Iran's IRGC claims it struck a US airbase in Kuwait after US hits military targets on Kharg Island.

The Strait is now closed again as tensions escalate. Trump is downplaying any near-term deal. pic.twitter.com/2sLy7MvUo7

— Coin Bureau (@coinbureau) May 28, 2026

The situation has made investors more cautious. Crypto usually reacts quickly to geopolitical shocks because traders often reduce exposure to volatile assets during periods of global uncertainty. This time, the reaction was clear. Bitcoin slipped to $73,400, down about 3.13% on the day. Its intraday low touched $72,711, showing strong selling pressure.

Ethereum also faced pressure. ETH was trading near $1,991, down about 4.3% from the previous close. The drop pushed Ethereum below the important $2,000 level, which traders often watch closely during weak market conditions.

The market stress was also clear in the liquidation data. According to CoinGlass, more than 165,000 traders were liquidated in the past 24 hours, with losses reaching $930.35 million. Most of the damage came from long positions, showing that many traders were betting on prices to rise before the sudden selloff. Bitcoin saw the biggest liquidations at $366.11 million, while Ethereum followed with $239.36 million.

Crypto Market Turns Risk-Off

The selloff shows that the market remains highly sensitive to news from the Middle East. When military tensions rise, investors often move toward safer assets and away from crypto, stocks, and other high-risk markets. Oil prices can also rise during such events, especially when the Strait of Hormuz is involved.

The Strait of Hormuz is one of the world’s most important energy routes. Any threat around this area can affect oil supply fears and global inflation expectations. That can pressure crypto because higher inflation risks may reduce hopes for easier monetary policy.

The Financial Times reported that oil prices rose after the latest military actions, while the U.S. and Iran continued to exchange fire despite a strained truce. The report also said both sides remain involved in talks, but mixed signals from Washington and Tehran have made the peace process uncertain.

Peace Deal Still Unclear

The main problem for markets is uncertainty. Traders were hoping for signs of progress in peace talks. However, fresh strikes have raised doubts about whether a deal can be reached soon.

The Associated Press also reported that the U.S. imposed sanctions on Iran’s Persian Gulf Strait Authority. The move added more pressure on Tehran while talks continued. President Trump said a deal could be near, but he also warned that military action would continue if no agreement is reached.

This makes the situation quite complicated for cryptocurrencies. Bitcoin and Ethereum might have continued volatility in the coming period if things get worse. However, any confirmed progress toward a peace deal could quickly improve sentiment and bring buyers back into the market.