The global cryptocurrency market faced a sharp decline on June 13, 2025, following escalating military conflict between Israel and Iran. As news broke of airstrikes targeting Iranian facilities, investors rushed to offload digital assets, triggering widespread panic selling and wiping billions off the market.
Bitcoin and Ethereum Hit Hard
Leading cryptocurrencies took a significant hit:
- Bitcoin (BTC) dropped by over 5%, trading around $103,000
- Ethereum (ETH) plunged by 10%, falling to $2,470
- Solana (SOL) fell by 11%, while XRP and BNB also posted losses
The sharp selloff triggered liquidations exceeding $1.2 billion in 24 hours, shaking both long and short leveraged traders. The Relative Strength Index (RSI) dropped to near 28, indicating extreme overselling conditions.
Israel Launches Major Military Operation
The sudden market crash was driven by Israel’s large-scale military operation dubbed “Rising Lion”, targeting Iran’s nuclear and military facilities in cities including Natanz and Tehran. Iranian state media confirmed the loss of senior IRGC commander Hossein Salami, along with civilian casualties.
Israeli officials stated the operation was in response to mounting nuclear threats and would “continue until the objective is secured.” Air defenses were heightened and flight activity was suspended. In retaliation, Iranian leaders vowed a “powerful response.”
Global Markets React
Beyond crypto, the geopolitical shockwave hit traditional markets as well:
- U.S. stock futures dropped 1.5%
- European indices opened in red
- Gold rose to $3,428/oz as a safe-haven asset
- Oil prices surged nearly 10%, reaching $74/barrel
- 10-year Treasury yields fell to 4.32%
The Crypto Fear & Greed Index still remained in the “Greed” zone but slid 10 points, reflecting shaken confidence.
Outlook: High Volatility Ahead
With tensions flaring in the Middle East, analysts expect continued volatility in the crypto space. While some investors may view the dip as a buying opportunity, others are steering toward traditional safe havens until geopolitical risks subside.
Until the situation stabilizes, traders should anticipate sharp price swings and remain cautious when deploying capital.
