Key facts
- Bitcoin and major cryptocurrencies traded lower following U.S.-Iran aerial strikes.
- The exchange of strikes has pushed a fragile cease-fire between Washington and Tehran to the brink of collapse.
- WTI crude futures jumped more than 2% to $72.27.
- Bitcoin fell to $62,657 in Asian trading hours.
- Ether, XRP, and Solana declined between 1% and 2.3%.
Bitcoin and major cryptocurrencies traded lower Tuesday after the U.S. and Iran exchanged aerial strikes, sending the dollar higher and crude oil prices up. BTC, the leading cryptocurrency by market capitalization, slipped to $62,657 in Asian trading hours, down nearly 1% since midnight UTC. Ether (ETH), XRP (XRP), and Solana (SOL) fell between 1% and 2.3%. WTI crude futures jumped more than 2% to $72.27, while the Dollar Index held steady above 101.00, maintaining Tuesday’s gains. The U.S. stated it launched "powerful strikes" against Iran following attacks on three ships in the Strait of Hormuz, including Qatari and Saudi tankers. In response, Iran said it targeted "85 US military installations" in retaliation for strikes on its Hormozgan and Mahshahr provinces. The scale of the escalation appears to have pushed the two nations’ cease-fire to the brink of collapse. The conflict, which earlier this year sent oil above $100 a barrel and stoked global inflation fears, raised expectations of higher interest rates that tend to weigh on riskier assets like cryptocurrencies. Higher rates make it more difficult for traders to abandon yields from supposedly safe bonds in favor of higher-risk assets such as cryptocurrencies.