The global cryptocurrency market cap fell 6.2% over the past 24 hours to $3.16 trillion, as escalating geopolitical tensions between the U.S. and Iran spurred a risk-off environment among investors. Total trading volume hit $148 billion during the same period.
Top gainers defying the trend included Gains Network (GNS), which surged 49.8%, Poollotto.finance up 38.2%, and meme coin Banana For Scale, which jumped 21.3%. On the flip side, Reservoir rUSD (RUSD) tumbled 50%, Gorbagana dropped 36.8%, and GAME by Virtuals fell 34.7%.
The shift comes as investors flee riskier assets like cryptocurrencies in favor of traditional safe havens such as the U.S. dollar, gold, and Treasury bonds. Though the U.S. Dollar Index edged slightly lower to 98.774 (-0.01%), analysts expect near-term strength from safe-haven demand, according to Reuters.
The decline in crypto prices reflects broader market psychology during geopolitical crises. Rising uncertainty tends to shake investor confidence in volatile assets.
Despite being decentralized, crypto is still perceived as speculative, observers note. When conflict erupts, people don’t want volatility—they want security.
Macroeconomic spillovers from geopolitical instability—such as inflationary pressure from rising oil prices or central bank rate hikes—also dampen crypto sentiment, especially when higher interest rates make risk assets less appealing.
In short, crypto’s latest dip underscores how sensitive the market remains to global events—and how quickly investor appetite can shift in uncertain times.