Cryptocurrencies lost roughly $80 billion in market capitalization over the past 24 hours after fresh U.S. military strikes on Iran rattled investors, reigniting fears of a broader regional conflict resuming.

Bitcoin fell below $73,000, dropping more than 3.5% to around $72,640, its weakest level since early April, while ethereum slid more than 4% to below the key $2,000 level at around $1,980 as traders pulled back from risk assets.

The sell-off also triggered nearly $1 billion in liquidations across leveraged crypto positions, deepening losses across major digital assets, according to Coinglass data.

Investors grew increasingly cautious over fears that the ongoing U.S.-Iran conflict could fuel inflation and keep interest rates higher for longer. Rising U.S. Treasury yields and a stronger dollar also added pressure on risk-sensitive assets.

Outflows from U.S. spot Bitcoin exchange-traded funds also added to the pressure. Since early May, investors have pulled around $1.5 billion from spot Bitcoin ETFs, while BlackRock’s iShares Bitcoin Trust (IBIT) saw its second-biggest daily outflow on Thursday at $527.8 million.

Ethereum’s sharp decline also pushed Ether futures open interest to a record 16 million ETH as traders increased bets on further losses.

Fresh strikes jolt markets again

Market losses accelerated after reports emerged that the U.S. military carried out another wave of strikes late Wednesday targeting an Iranian military site and shooting down four Iranian attack drones. Following the strikes, Iran’s Islamic Revolutionary Guard Corps later announced a retaliatory attack targeting a U.S. airbase in Kuwait.

The latest attacks came while negotiations aimed at ending the conflict were still ongoing. Speaking during a White House cabinet meeting on Wednesday, U.S. President Donald Trump said he was “not satisfied” with a deal involving Iran and hinted at possible further military action.

Oil prices also jumped after the strikes, with WTI crude climbing above $92 per barrel and Brent crude nearing $98, both rising around 3% and recovering earlier losses before slightly easing back.