Crypto Markets Crash as Israel Launches Military Strikes on Iran

Bitcoin, Ethereum, Solana Lead Losses as Geopolitical Tensions Escalate in Middle East

June 13, 2025 — The cryptocurrency market witnessed a sharp downturn on Friday amid intensifying geopolitical conflict in the Middle East. Following reports that Israel has launched a major military offensive against Iran, investor sentiment took a nosedive, prompting widespread selloffs across digital assets.

The total market capitalization of the crypto sector dropped by approximately 7% over the past 24 hours, falling to $3.3 trillion, according to data from CoinMarketCap.

Major Cryptocurrencies in the Red

Bitcoin (BTC) fell by nearly 5% to around $103,464, while Ethereum (ETH) experienced a steeper drop of about 10%, trading at $2,471 at the time of reporting. Solana (SOL) led losses among top-tier altcoins, plunging over 11% to $141.

Read More: Bitcoin Dips Below $108K as Rate Cut Hopes Fade

Other major tokens were not spared:

• XRP fell by roughly 6%

• BNB slipped nearly 4%

Market Liquidations and Sentiment Shift

According to analytics platform CoinGlass, over $1.2 billion in crypto positions were liquidated in the past 24 hours — a 125% increase compared to the previous day. Open interest in crypto futures fell nearly 10% to $142 billion, indicating a widespread reduction in leveraged trading.

The relative strength index (RSI) for several assets dipped to 28, suggesting the market has entered "oversold" territory. Still, the Crypto Fear & Greed Index remains in the “Greed” zone with a score of 61, down 10 points from the previous day — a sign of mounting uncertainty among traders.

Middle East Conflict Fuels Market Panic

The crypto selloff followed a pre-dawn military operation in which Israeli forces struck key strategic sites in Iran. Reports indicate that the targets included uranium enrichment facilities in Natanz, ballistic missile factories, and headquarters of Iran’s Revolutionary Guard Corps in Tehran.

Iranian state media confirmed multiple civilian casualties, including children, and the death of General Hossein Salami, a top commander. In response, Israel's Prime Minister Benjamin Netanyahu declared the launch of “Operation Rising Lion,” aimed at dismantling what he called Iran's “imminent nuclear threat.”

Israel has since declared a state of emergency, shut down its primary airport, and activated its missile defense systems in preparation for possible retaliatory attacks. Tehran has vowed a "severe response," raising fears of a broader regional conflict.

Read more: Bitcoin Surges Toward $112K as Bullish Sentiment Hits 7-Month High

Global Markets React to Crisis

The ripple effects of the conflict extended to traditional financial markets. U.S. stock futures slipped by 1.5% across all major indices, and European markets opened in the red.

In contrast, safe-haven assets saw modest gains:

• Gold climbed 0.75% to $3,428 per ounce.

• 10-year U.S. Treasury yields dropped to 4.32%.

• Crude oil prices surged nearly 10%, touching $74 per barrel, as energy traders priced in potential supply disruptions.

Outlook: Volatility Ahead

With the situation in the Middle East rapidly evolving, risk-off sentiment is likely to persist. Analysts warn of further market instability if the conflict escalates or draws in other nations. For now, investors appear to be shifting capital into safer, more liquid assets as they await clarity on the geopolitical front.