Crypto markets have wiped off more than $2 trillion in market cap since October 2025, according to Coingecko.
Bitcoin’s price has hit one of its lowest levels in around 20 months, aside from a decline in February, trading at just over $61,000.
On June 5, bitcoin hit a low of around $61,193. The last time prices were trading at this level was on Feb. 6. The crypto was trading at $62,467 as of 7:20 a.m. EDT. Prices had risen for some time after the U.S.–Iran war broke out in February. Since hitting a recent peak of roughly $82,431 on May 10, bitcoin has fallen by more than 24 percent.
The overall crypto market has been in a downward trend since October 2025. According to data aggregator Coingecko, the total crypto market cap fell from $4.37 trillion on Oct. 7, 2025, to $2.32 trillion on June 4, a loss of more than $2 trillion over about eight months.
In a May 20 insights post, financial services company deVere Group said the Iran war has been a “major headwind” for crypto, pointing to the strengthening U.S. dollar amid geopolitical tensions.
“When dollar purchasing power rises, fewer dollars are required to buy the same amount of Bitcoin. But there is a double effect at play—Bitcoin is sometimes viewed as a defense against currency debasement, and its use case weakens when currencies reassert themselves,” the post said.
“Because the Iran war has been dollar positive—rising energy prices have strengthened the greenback—crypto has suffered, not least because the threat of inflation has torn up the outlook for rate cuts, tightening liquidity and propped up the dollar.”
The U.S. dollar index has strengthened since Feb. 28, the day the war began. The index opened at 95.96 that day and is currently at 99.22.
According to data from crypto data analysis platform Coinglass, bitcoin spot ETFs have seen mostly outflows since last month.
In a June 5 daily market brief, trading company Presto highlighted a significant outflow of funds from bitcoin ETFs in the first quarter.
“Professional investors reduced their U.S. spot Bitcoin ETF holdings by 17 percent in Q1, with hedge funds and brokerages accounting for the vast majority of the selling as Bitcoin fell 22 percent during the quarter,” the brief said.
“Meanwhile, investment advisors remained relatively steady, and banks increased their exposure, suggesting the pullback was driven primarily by tactical and trading-oriented investors.”
Meanwhile, gold prices have also declined amid the U.S.–Iran conflict. On Feb. 27, a day prior to the war, spot gold ended the day at roughly $5,277 per oz. Gold is currently trading at around $4,461.
