Early Friday Hong Kong time, Israel's military conducted airstrikes against Iranian nuclear facilities, triggering immediate risk-off sentiment across Asian markets. Bitcoin plunged 4.7% to $103,300 while Ethereum dropped sharply to $2,694 within hours of the attack, according to CoinDesk's real-time market coverage. This geopolitical shock reversed recent bullish momentum, though Ethereum maintains a 40% quarterly gain per CoinMarketCap data, outperforming Bitcoin and the CoinDesk 20 Index. Crucially, Ethereum's dominance ratio surged from 7% to nearly 10% over the past month as noted by Hex Trust's Head of OTC Charmaine Tam in a research memo to CoinDesk, while Bitcoin's dominance fell 2-3 percentage points from recent highs. This divergence signals capital rotation from Bitcoin ETFs toward altcoins, evidenced by $1.25 billion inflows into U.S. spot ETH ETFs since mid-May per institutional flow tracking. Simultaneously, Singapore's Monetary Authority enforced new licensing requirements effective June 30, forcing offshore-focused exchanges like Bybit and Bitget to exit the market—a regulatory response partly attributed to past failures of Singapore-registered but operationally absent entities like Three Arrows Capital and Terraform Labs as documented in MAS's 2023 FSMA consultations. The regulatory shift aims to eliminate paper-based operations following reputational damage from the 2022 collapses where MAS lacked oversight despite the firms' Singaporean domicile. Trading implications emerge from cross-market correlations: Gold spiked 3% to $3,426.95 as traditional safe-havens rallied, while Asia-Pacific equities mirrored crypto's decline with Japan's Nikkei 225 dropping 1.28%. However, the S&P 500 defied the trend with a 0.38% gain to 6,045.26 on Thursday U.S. hours, driven by Oracle's 13% earnings surge—highlighting the tech sector's decoupling from crypto volatility. Ethereum's relative strength against Bitcoin (ETH/BTC up 3.145% to 0.02296 in 24 hours per spot exchange data) suggests altcoins like Solana and Cardano may benefit, with SOL/USDT gaining 7.946% to $143.46 and ADA/USDT rising 6.543% to $0.5797. Singapore's regulatory crackdown could temporarily reduce Asian trading volumes, particularly affecting derivatives platforms like Bybit that dominated regional BTC futures before the ban. Yet institutional ETH demand remains robust with 18 consecutive days of U.S. ETF inflows, including $240 million on June 11 per fund custodians, potentially cushioning downside risks. The capital rotation narrative gains credence from on-chain data where Pendle, Bittensor, and Hyperliquid recorded double-digit TVL growth while Ethereum Layer 2 networks saw activity spikes preceding the sell-off. Technical indicators reveal critical levels: ETH faces resistance near $2,770 with repeated rejections forming a descending channel, while Bitcoin's recovery to $105,475 (up 4.402% in 24 hours per spot markets) faces overhead supply near $106,000. Volume analysis shows ETH/USDT trading $498 million in 24 hours versus Bitcoin's $14.1 million, confirming altcoin momentum. The ETH/BTC pair's 20-day SMA breakout at 0.0225 signals strengthening capital rotation. Geopolitical sensitivity metrics indicate crypto's 90-day correlation with gold rose to 0.32 during the Iran crisis per TradingView data, while its inverse correlation with the Dollar Index hit -0.41. Singapore's regulatory shift may initially compress Asian trading volumes—historically accounting for 35% of global crypto flows per Chainalysis reports—but long-term institutional participation through compliant ETFs could offset retail outflows. Quranium's quantum-safe wallet launch, while technologically significant with NIST-approved encryption, had negligible market impact as quantum computing threats remain theoretical. FAQ: Why did Ethereum outperform Bitcoin during the market crash? Ethereum's institutional ETF inflows and its role as a liquidity gateway for altcoins created relative demand insulation. How does Singapore's regulation affect traders? Offshore exchanges serving Singaporean users must now comply with MAS licensing, reducing access to leveraged products but enhancing investor protection. What trading opportunities exist now? ETH/BTC strength above 0.0225 suggests altcoin accumulation, with SOL and ADA showing high beta momentum.