Crypto markets retreat as US-Iran tensions spark risk-off sentiment
Digital assets fall as investors digest reports of drone strikes in the Middle East and shifting US policy signals, with broader equity futures and oil prices reflecting heightened caution.
Bitcoin and Ethereum prices declined on Monday, 18 May 2026, as market participants adopted a cautious stance in response to escalating geopolitical tensions. According to data from Yahoo Finance, Bitcoin opened at $77,414.91, marking its lowest opening price since the start of the month. By 7:26 a.m. ET, the asset had fallen to $76,803.25, representing a 0.9 per cent drop from Sunday’s opening level.
Ethereum mirrored the downward trajectory, opening at $2,129.87, its lowest level since 7 April 2026. The second-largest cryptocurrency by market capitalisation dropped to $2,113.92 by the same timestamp, recording a 2.3 per cent decrease from its previous close. The sell-off coincided with broader risk-off sentiment across global markets.
Market caution was attributed to recent developments in the Middle East, including drone strikes over the weekend and a post by President Trump on Truth Social. These events are interpreted as indicators of growing tensions between the United States and Iran, despite a weeks-long ceasefire. The geopolitical uncertainty has rippled through traditional asset classes, with stock futures starting lower, oil prices rising, Treasury yields increasing, and precious metal prices falling.
Bitcoin, which operates as a decentralised digital currency without government or banking oversight, reached its all-time high of $126,198.07 on 6 October 2025. Its all-time low was recorded at $0.04865 on 14 July 2010. Ethereum similarly hit its peak of $4,953.73 on 24 August 2025, with a historical low of $0.4209 on 21 October 2015. Both assets rely on a globally distributed public ledger known as the blockchain to validate transactions and verify ownership.
Financial advisors are increasingly highlighting the high-risk, volatile nature of the cryptocurrency asset class. While some investors seek full ownership of private keys through crypto exchanges or fintech apps, others utilise regulated systems such as bitcoin ETFs for price exposure. Regardless of the entry method, the current market environment underscores the rapid price movements characteristic of digital assets, which can surge or drop without warning.
