By Callum Keown

Cryptocurrencies are getting hit by developments in the Iran war.

Global markets are on edge Thursday after fresh strikes by the U.S. and Iran overnight. Oil prices are rising, while gold was falling and stocks were mixed.

Digital assets are also on the move -- sharply lower. Bitcoin was trading at $73,214 early in the day, down more than 3% over the past 24 hours. The world's largest cryptocurrency has fallen 16% since the start of the year. Ethereum, the second-largest crypto, fell 4.4% to $1,985, while popular altcoins XRP and Solana were down 3.3% and 3.9% respectively.

Bitcoin traded as high as $82,500 earlier this month but has lost considerable ground in recent weeks.

The longer the conflict goes on, the greater inflationary pressures are likely to be. Cryptocurrencies tend to thrive in an interest-rate-cutting environment, so an inflation spike and growing odds for a Federal Reserve rate increase are unhelpful.

"Crypto sentiment has broadly weakened since Oct. 10, 2025, and the market is currently operating in a low-liquidity environment with limited new catalysts," said Paul Howard, senior director at crypto trading firm Wincent.

"In these conditions, geopolitical developments have an outsized ability to drive risk-on and risk-off positioning," he added in a note earlier this week.

Write to Callum Keown at callum.keown@dowjones.com

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May 28, 2026 10:11 ET (14:11 GMT)

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