Cryptocurrency markets suffered substantial losses on Friday, June 13, as investor confidence faltered amid escalating geopolitical tensions in the Middle East. A significant military operation launched by Israel targeting Iran triggered sharp declines across digital assets globally.
Within 24 hours, the total cryptocurrency market capitalization had declined roughly 7%, sliding to approximately $3.3 trillion. Bitcoin, the world’s premier digital currency, was down 5%, trading around $103,464. Ethereum, another leading crypto asset, endured a 10% drop to approximately $2,471 while Solana suffered even heavier losses, down 11% to trade near $141. Additionally, XRP and BNB fell by 6% and 4% respectively, mirroring the broad-based sell-off within the market.
According to Coinglass, crypto futures markets saw massive liquidations totaling $1.2 billion, marking a dramatic spike of 125% compared to the previous day. Simultaneously, open interest on crypto futures plunged nearly 10%, settling at around $142 billion. The relative strength index (RSI) for the crypto sector declined sharply to 28, firmly indicating that the market had entered oversold territory.
Notably, despite the bearish sentiment, the Crypto Fear & Greed Index—compiled daily to gauge investor sentiment—still remained in the “Greed” category, registering 61 points. However, this represented a drop of 10 points from the previous day’s figure, reflecting investors’ heightened caution in response to the geopolitical turmoil.
The dramatic crypto market movement followed Israel’s large-scale military strike against Iranian targets. Reports indicated that Israeli forces carried out strikes against multiple strategic sites, including uranium enrichment facilities in Natanz, missile development centers, and the Tehran headquarters of Iran’s Revolutionary Guard Corps. General Hossein Salami, head of the Guard, was killed, and civilian casualties—including children—were reported by Iranian media sources.
In announcing the operation—dubbed “Operation Rising Lion”—Israeli Prime Minister Benjamin Netanyahu stated the actions aimed directly at eliminating Iran’s nuclear capabilities. Immediately following the attack, Israel declared a nationwide state of emergency, heightened air defense systems, and temporarily closed its main international airport, expecting swift retaliation from Iran.
For its part, Iran vowed a severe and swift response. Meanwhile, the United States quickly clarified its stance through Secretary of State Marco Rubio, who confirmed that the U.S. was not involved in the strikes but remained committed to defending American military and strategic interests in the region.
In parallel to the crypto market plunge, traditional stock markets worldwide also felt the pressure from the conflict. In pre-market trading, U.S. futures declined 1.5% across major indices, while European exchanges opened lower by a comparable margin. Conversely, investors sought safe-haven assets: Gold futures climbed 0.75%, reaching $3,428 per ounce, and yields on the 10-year U.S. Treasury dropped marginally to 4.32%.
Oil markets reacted notably, with crude prices surging approximately 10% due to fears of disrupted supply and deeper regional instability. Benchmark crude edged upwards to around $74 per barrel, driven by heightened geopolitical risk premiums.
Analysts warn that markets—both traditional and crypto—may experience prolonged volatility should tensions in the Middle East escalate into broader regional conflict. In the short term, continued uncertainty will likely fuel risk aversion, steering investment capital toward safer and more liquid assets until clearer signals emerge surrounding the geopolitical landscape.
