The largest cryptocurrency fell as much as 3.3% on Sunday to around $68,150, marking its lowest level since early March, while Ether slid nearly 5% to about $2,050. The weakness extended across the complex, with Solana, XRP and Cardano also moving lower, suggesting a broader pullback rather than an isolated move. Since the US and Israel began attacks on Iran at the end of February, Bitcoin (BTC-USD) has lost roughly 20%, a decline that could be seen as testing its perceived role as a crisis hedge.

Market participants point to a mix of drivers behind the move, not just geopolitics. Bitcoin appears to be trading more in line with other risk assets, which have also come under pressure, rather than diverging from them. Higher energy prices…