Crypto Market Sees $85 Billion Drop Amid US-Iran Conflict Escalation

The ongoing conflict between the US and Iran has led to a pullback in the crypto market. Major assets are down on their daily charts, mirroring the decline of stocks and rising oil prices. Since August 30, 2026, there have been renewed exchanges of strikes, which have directly impacted high-risk assets like cryptocurrencies.

Oil prices have broken above $90 per barrel, while Treasury yields have risen to 4.8%, their highest level since October 2023. This has led to a shift in the CME forecast for US Federal Reserve policy, with the probability of a rate hike in September increasing to 68%.

Analysts are divided on the crypto market's prospects, with Crypto Rover estimating that the sector's market cap fell by about $85 billion on the news. Meanwhile, Nebraskangooner believes bitcoin's local bottom has likely already formed and is targeting prices above $87,000 and $97,000.