Cryptocurrency markets experienced a sharp decline following U.S. airstrikes in the Strait of Hormuz, which heightened inflation concerns. Bitcoin fell to its lowest level since April 13, while Ethereum dropped below the $2,000 mark. The geopolitical tensions led to a significant liquidation event, with nearly $897 million in leveraged long positions being wiped out across the market. This downturn reflects the sensitivity of crypto assets to global political developments and macroeconomic factors.