Bitcoin slumped below $73,000 on Thursday, hitting its lowest point in over six weeks, as renewed U.S. military strikes on Iran rattled risk sentiment and triggered fresh selling across cryptocurrency markets.
The world's largest cryptocurrency last traded 4% lower at $72,782.9, its lowest since mid-April.
Ether, the second-largest token, dropped 5% to $1,975.63, its lowest level in two months.
Investor sentiment deteriorated after reports that the U.S. carried out a second round of strikes on Iran this week, dimming hopes for a near-term peace agreement and pushing oil prices higher.
Brent crude rebounded above $97 a barrel after falling on optimism over possible negotiations. But those hopes faded after President Trump dismissed reports of a proposed agreement between Iran and Oman.
Higher oil prices and geopolitical tensions weighed on risk appetite, while investors braced for U.S. inflation data that could influence Federal Reserve rate expectations.
Bitcoin was also pressured by institutional selling and heavy outflows from spot Bitcoin ETFs. U.S. spot Bitcoin ETFs recorded net outflows of $733.43 million on May 27, marking one of the largest single-day withdrawals in recent weeks.
Altcoins also fell sharply. XRP dropped 3.7%, Solana slipped 4%, Cardano and Polygon declined 4.5% each, and Dogecoin fell 4.2%.
