Bitcoin sinks below $104,000, ether slides after Israeli airstrikes on Iran

Cryptocurrency markets tumbled late Thursday as Bitcoin and Ethereum fell sharply after Israel reportedly launched airstrikes on Iran, intensifying regional conflicts and triggering a flight from risk assets.

Bitcoin fell 4.5% over the past 24 hours, dropping below the $104,000 level to trade at $103,802, according to The Block's price page. Ether sank 10% to $2,497.

The crypto market plunge came after Israel launched airstrikes in Iran with explosions heard in Tehran, according to the Associated Press. An unnamed Israeli military official confirmed with local reporters that the air force strikes targeted Iranian nuclear and military infrastructure, the report said.

Israeli Defense Minister Israel Katz declared a state of emergency following the country's "preemptive strikes" against Iran, stating that "a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future," CNN reported.

In response, crude oil prices surged over 7% as U.S. benchmark West Texas Intermediate climbed to $72.98 per barrel, a 7.23% gain, while international standard Brent crude advanced to $74.23 per barrel, up 7%.

Cryptocurrency markets are experiencing selling pressure as Israeli strikes on Iran drive investors toward safer investments, said Nick Ruck, director at LVRG Research.

"Increased geopolitical risk has prompted a shift toward safer assets, with market participants anticipating near-term pressure on crypto valuations," Ruck told The Block.

"Oil prices have surged past $70 per barrel for the first time in three months, and the crypto market is selling off sharply," said Min Jung, research analyst of Presto Research, commenting on the impact of the Israeli airstrikes on Iran.