Crypto Market Takes a Hit Amid Middle East Tensions
On Friday,June 13,the crypto market experienced a important downturn due to escalating geopolitical tensions in the middle East. After Israel launched a major military operation against Iran, digital assets saw a sharp decline.
The total crypto market cap fell by 7% to $3.3 trillion.Bitcoin (BTC) dropped 5%, trading at $103,464. Ethereum (ETH) fell 10% to $2,471, while Solana (SOL) plummeted 11% to $141. XRP and BNB also declined, losing 6% and 4% respectively.
Data from CoinGlass revealed a 125% surge in crypto liquidations, totaling $1.2 billion.Open interest in crypto futures markets decreased by 9.7% to $142 billion.The relative strength index dropped to 28,signaling an oversold market.
Despite the selloff, the Crypto Fear & Greed Index remained in the “Greed” zone at 61, down 10 points from the previous day. This drop reflects investor uncertainty as they assess the risk of a broader conflict.
The market turmoil followed an early morning Israeli attack on Iran. Israeli forces targeted uranium enrichment facilities, missile production sites, and the headquarters of Iran’s revolutionary Guard Corps.Iranian state media reported civilian casualties.
Israeli Prime Minister Benjamin Netanyahu announced the start of “Operation Rising Lion,” aimed at neutralizing Iran’s nuclear threat. Iran vowed a “harsh response,” while the U.S. confirmed it was not involved.
Customary markets also felt the impact.U.S. stock futures dropped 1.5%,and European markets opened lower. Safe-haven assets like gold rose slightly, while crude oil surged about 10% to $74 per barrel.
With tensions rising, both crypto and global markets may face continued volatility. Risk appetite could weaken,pushing capital into safer assets until the situation stabilizes.
