Israel-Iran Conflict Triggers Crypto Crash: Bitcoin Drops 4.5%, Ethereum Plummets Over 10%

The cryptocurrency market experienced a sharp decline on June 13, as escalating geopolitical tensions in the Middle East rattled investor confidence. Bitcoin, the largest cryptocurrency by market capitalization, dropped below the $102,900 mark, losing approximately 4.5% of its value within 24 hours.

Ethereum saw an even steeper decline, with its price plummeting over 10% to $2,470. Other digital assets, including Solana, Dogecoin, and Chainlink, also suffered double-digit percentage losses.

Within the first hour following Israel's airstrikes on Iran, the crypto market recorded liquidations totaling $382 million. Long positions accounted for $369 million of these liquidations, while short positions saw $12.66 million in liquidations.

The rapid sell-off highlights the sensitivity of the cryptocurrency market to geopolitical events, as investors sought safer assets amidst turmoil.

Geopolitical Tensions Spark Market Volatility

The market upheaval was triggered by Israel's airstrikes targeting Iranian nuclear and military infrastructure, an operation aimed at crippling Iran’s ballistic missile capabilities. Israeli President Benjamin Netanyahu confirmed the strikes, stating that the operation would continue until the threat was neutralized.

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

Min Jung, a research analyst at Presto Research, also noted that oil prices had surged past $70 per barrel for the first time in three months, while the crypto market was experiencing a sharp sell-off due to the impact of the Israeli airstrikes on Iran.

Economic Impact: Gold Hits One-Month High, Oil Jumps 7.6%

The geopolitical unrest also sent shockwaves through the global economy. Brent crude, the international benchmark, surged approximately 7.6% to $74.65 per barrel, reaching its highest level in months. In parallel, gold prices climbed sharply on Friday, with spot gold hitting $3,428.28 per ounce, marking a one‑month high amid safe‑haven demand.

U.S. stock index futures reacted swiftly to the conflict, with major contracts—including those tied to the S&P 500 and Nasdaq—falling over 1% in early trading, reflecting heightened risk aversion among investors.

These movements reflect a flight to safety by investors, underscoring the broader economic ramifications of the conflict and growing risk aversion as geopolitical uncertainty intensifies.

Israeli Defense Minister Israel Katz declared a state of emergency, warning of potential missile and drone attacks from Iran in retaliation for the strikes. This announcement further fueled market anxiety, amplifying the sell-off in high-risk assets like cryptocurrencies. Notably, Israel has so far refrained from targeting Iran’s oil infrastructure and key ports. Analysts suggest that the sharp rise in oil prices may be driven more by panic and irrational market reactions than by actual supply disruptions.

Given that sustained increases in oil prices run counter to the strategic interests of the Trump administration, the U.S. may take measures to curb further oil price increases if market forces fail to restore balance — a move that could risk further escalating geopolitical tensions.

Rising Tensions Signal Potential Short-Term Escalation

In a shocking development, Chief of Staff of Iran’s Armed Forces Mohammad Bagheri has reportedly been assassinated. While details remain scarce, Iranian officials have yet to confirm the news. This incident, if verified, could further escalate tensions in an already volatile region, amplifying uncertainty not only in global markets but also within the crypto space.

Given the circumstances, analysts anticipate that the conflict is likely to intensify in the short term, with sustained impacts on market sentiment. Prices of various crypto assets may face a period of heightened volatility as investors react to unfolding events. BlockFlow will closely monitor the situation and provide timely updates on market conditions to keep readers informed.