- Crypto markets plunged after Israel launched a major military strike on Iran, sparking investor panic and wiping 7% off the total market cap.
- Bitcoin, Ethereum, and Solana led the losses, while liquidations surged past $1.2 billion amid growing fears of a wider conflict.
The cryptocurrency market took a sharp nosedive on Friday, June 13, as escalating conflict in the Middle East triggered a widespread selloff. News that Israel had launched a major military strike against Iran sent shockwaves across financial markets, with digital assets among the hardest hit.
Bitcoin, Ethereum, and Solana Lead the Drop
Bitcoin dropped around 5% to $103,464, while Ethereum plunged 10% to $2,471. Solana faced the steepest fall among majors, sliding 11% to $141. Other top altcoins weren’t spared either—XRP lost 6%, and BNB shed 4% amid the panic-driven selloff.
The total crypto market capitalization sank by 7%, falling to $3.3 trillion in just 24 hours. CoinGlass data reveals over $1.2 billion in liquidations, a 125% spike, while open interest in futures contracts dropped nearly 10% to $142 billion. The Relative Strength Index (RSI) plummeted to 28—signaling heavily oversold conditions.
Also read: Charles Hoskinson Defends $100M ADA to USDM Stablecoin Plan, Dismisses Market Impact Fears
Fear Creeps In, but Greed Still Lingers
Interestingly, the Crypto Fear & Greed Index remained in “Greed” territory at 61, though down from 71 a day prior. This divergence between technical indicators and market sentiment hints at an undercurrent of optimism—but it’s rapidly being tested by geopolitical fears.
Middle East Conflict Sparks Global Fallout
The selloff was sparked by Israel’s “Operation Rising Lion,” which targeted key Iranian infrastructure including nuclear facilities and military sites. Iranian media confirmed the death of General Hossein Salami and reported civilian casualties, prompting Iran to vow a “harsh response.”
Global markets followed crypto’s lead. U.S. stock futures dropped 1.5%, European indexes opened lower, and safe-haven assets saw a surge. Gold gained 0.75%, crude oil spiked 10%, and 10-year Treasury yields dipped to 4.32%—classic signals of a market bracing for conflict.
What’s Next for Crypto Investors?
As the threat of broader war looms, traders may continue exiting risk assets like cryptocurrencies in favor of traditional safe havens. Volatility is likely to remain elevated, and sentiment fragile, until there’s clarity on how far the conflict may escalate.
For now, crypto investors should brace for uncertainty, watch global developments closely, and prepare for continued turbulence in the days ahead.