The global cryptocurrency market witnessed a sharp downturn on June 13, 2025, as renewed conflict between Israel and Iran sent shockwaves across financial markets. Following an overnight military operation by Israel targeting key Iranian infrastructure, digital assets experienced heavy selling pressure. The total market capitalization of cryptocurrencies fell by nearly 7% within 24 hours, dropping to approximately $3.3 trillion.
Bitcoin, Ethereum, Solana Lead the Selloff
The market downturn was led by major cryptocurrencies, with Bitcoin (BTC) falling nearly 5% to around $103,460. Meanwhile, Ethereum (ETH) recorded a deeper slide, plummeting 10% to trade near $2,470.
Solana (SOL) also took a significant hit, declining by 11% to $141. Other large-cap coins like XRP and BNB saw declines of 6% and 4%, respectively. The sudden drop triggered widespread concern across the crypto trading community, many of whom had been optimistic about a sustained bullish trend throughout 2025.
Over $1.2 Billion Liquidated
Alongside price drops, the market experienced a massive liquidation event. More than $1.2 billion worth of long and short positions were liquidated in just 24 hours, as leveraged traders were caught off-guard by the sudden market downturn.
The overall crypto futures open interest shrank by about 10%, settling at around $142 billion. Technical indicators also signaled oversold conditions, with the Relative Strength Index (RSI) for many top assets dipping below 30, suggesting that assets were being aggressively sold.
Interestingly, despite the selloff, the Crypto Fear & Greed Index remained in the “Greed” territory at a score of 61, although it dropped by ten points, reflecting a dip in investor confidence.
The Geopolitical Trigger: Israel Strikes Iran
Tensions in the Middle East escalated after Israel launched Operation “Rising Lion”, a pre-dawn military offensive targeting Iran’s nuclear facilities in Natanz, Khondab, and Khorramabad, as well as several Revolutionary Guard command centers around Tehran.
Iranian state media later confirmed that the strikes resulted in the death of Hossein Salami, a top IRGC commander, and caused significant collateral damage, including civilian casualties. Several children were reportedly among the victims.
Israeli Prime Minister Benjamin Netanyahu addressed the nation, stating that the operation was a necessary response to Iran’s ongoing nuclear threat. He warned that the military campaign would continue “for as long as it takes.” In response, Israel declared a state of emergency, suspended outbound flights, and raised national alert levels. Iran, meanwhile, vowed to deliver a “severe and punishing response.”
Impact on Broader Markets
The ripple effect of the conflict extended well beyond crypto. U.S. stock futures were down by roughly 1.5%, while European markets opened lower amid global risk aversion. Safe-haven assets saw increased demand—gold rose by 0.75% to around $3,428 per ounce, and 10-year U.S. Treasury yields fell to 4.32%.
Crude oil prices surged by nearly 10%, with Brent Crude trading at approximately $74 per barrel, driven by fears of supply disruptions in the region.
What Lies Ahead?
With geopolitical tensions at a boiling point, analysts predict continued market volatility in the coming days. Crypto traders, in particular, are likely to remain cautious as further military developments unfold.
While risk assets such as cryptocurrencies tend to be sensitive to global conflict, safe-haven investments may continue to attract capital until the situation in the Middle East stabilizes. Until then, investors are advised to tread carefully and brace for potential market swings.
