Cryptocurrency Market Plummets Amid Rising Tensions Between Iran and US

The cryptocurrency market has taken a hit due to rising tensions between Iran and the United States. On Sunday, major coins like Bitcoin, Ethereum, and XRP tumbled sharply after Iran responded to President Trump's 48-hour ultimatum with an escalation of its own.

Iran vowed to completely seal the Strait of Hormuz, a waterway through which around 20% of the world's oil supply passes daily. Strikes on vital regional infrastructure, including energy facilities and IT systems, were also threatened. This shift in strategy from defensive to offensive operations has rattled financial markets worldwide.

The total crypto market cap fell 2.31% to $2.36 trillion, wiping roughly $55 billion in value as investors moved swiftly out of risk assets. Every major cryptocurrency fell in lockstep with equities, with Bitcoin dropping 2.58% to $68,820 and Ethereum losing 3.36% to $2,082.