The cryptocurrency market saw a dramatic decline of $80 billion following the recent US military strikes on Iran, as investors reacted to increased geopolitical tensions and potential disruptions in oil supply. Nick Ruck, director of LVRG Research, noted that despite Bitcoin and Ethereum being perceived as hedges, they are currently behaving like high-risk assets during times of uncertainty. As a result, traders are closely monitoring the escalating risks in the Middle East, particularly their potential impact on inflation and Federal Reserve policy. Ethereum (ETH) suffered a notable drop, falling below the psychological threshold of $2,000, decreasing by over 4% to $1,976, marking its lowest price since late March. Concurrently, crude oil prices reacted sharply, with West Texas Intermediate (WTI) crude rising by 3.5% to exceed $92 per barrel, while Brent crude climbed to $98 per barrel. The thinning of crypto liquidity and the flushing out of leveraged positions are further contributing to the market's instability.