Crypto Markets Rattle as Bitcoin Drops Following Breakdown of Iran Truce

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Cryptocurrency prices moved lower as escalating tensions between the U.S. and Iran sparked a fresh wave of risk aversion and pushed crude oil prices higher.

Bitcoin (BTC) and the wider digital asset market came under pressure on Tuesday after renewed airstrikes between the two countries led to a stronger U.S. dollar and prompted President Donald Trump to announce that the fragile ceasefire agreement with Iran had broken down.

CoinDesk data showed Bitcoin trading around $62,657 during Asian market hours, down nearly 1% since the start of the UTC session. Other major cryptocurrencies followed the decline, with Ether (ETH), XRP, and Solana (SOL) falling between 1% and 2.3%. Meanwhile, WTI crude oil futures advanced more than 2% to $72.27, while the Dollar Index remained above 101 after holding onto recent gains.

Trump said the ceasefire agreement with Iran was no longer valid, claiming the country had repeatedly violated the arrangement and criticizing its leadership over the stalled negotiations.

The comments came after both sides launched new military strikes.

U.S. authorities said they conducted “powerful strikes” against Iran following attacks on three ships in the Strait of Hormuz, including vessels linked to Qatar and Saudi Arabia. Iran responded by stating that it had targeted 85 U.S. military sites after earlier strikes hit areas in Hormozgan and Mahshahr.

The conflict, which began in late February, initially sent oil prices sharply higher, with crude briefly climbing above $100 per barrel and triggering global inflation concerns. While energy prices have since cooled below $60, rising consumer inflation expectations continue to raise concerns that central banks, including the Federal Reserve, may maintain higher interest rates.

Elevated rates tend to weigh on crypto markets by encouraging investors to favor traditional income-generating assets over higher-risk investments like Bitcoin and other digital currencies.