Israeli airstrikes targeting Iran's nuclear facilities and military leadership on June 13, 2025, triggered a global risk-off event that reverberated through cryptocurrency markets. According to CoinDesk reports, the attack occurred overnight ET and prompted immediate market reactions, with the CoinDesk 20 Index plunging 6.1% within 24 hours. Bitcoin, often considered a digital haven, dropped 2.9% to $104,889.07 by 4 p.m. ET Thursday, while Ethereum collapsed 8.81% to $2,523.28. Traditional safe havens surged, with gold futures rising 1.25% to $3,445 per ounce and Brent crude oil spiking 14% intraday. Global equity indices mirrored the selloff: Japan's Nikkei 225 fell 0.89%, Euro Stoxx 50 dropped 1.37%, and E-mini S&P 500 futures declined 1.16%. The escalation followed an International Atomic Energy Agency report confirming Iran's uranium enrichment violations and came despite $939 million in month-to-date inflows for spot Bitcoin ETFs and $811 million for Ethereum ETFs, per Farside Investors data. Polymarket traders now price a 91% probability of Iranian retaliation this month, amplifying market uncertainty.

The geopolitical shock abruptly reversed cryptocurrency gains fueled by regulatory optimism earlier in the week. Solana's SOL had rallied on June 12 following SEC requests for updated S-1 filings for spot ETFs, as reported by Wintermute OTC trader Jake Ostrovskis to CoinDesk. However, SOL plunged 9.5% within 24 hours of the Middle East escalation, demonstrating crypto's persistent correlation with risk assets during geopolitical crises. Cross-market analysis reveals three immediate trading implications: First, oil-gold-crypto divergence creates pairs trading opportunities, with Brent crude's 14% spike contrasting with Bitcoin's 2.9% drop. Second, negative funding rates across altcoins—ETH at -7.99% and DOT at -15.2% on Deribit—signal short-biased momentum. Third, institutional capital rotation is evident through simultaneous equity-crypto liquidations totaling $1.16 billion, with Coinglass data showing 90% of positions were long-side bets. Bloomberg ETF analysts maintain a 90% Solana ETF approval probability by year-end, suggesting accumulation opportunities in oversold AI/blockchain tokens like RNDR and FET.

Technical indicators confirm broad market vulnerability. Ethereum breached its critical 200-day exponential moving average support at $2,480 during the selloff, while Bitcoin tested its 50-day simple moving average at $103,150 according to CoinDesk analysis. Derivatives markets showed extreme deleveraging, with total open interest crashing from $55 billion on June 12 to $49.31 billion—a monthly low—as tracked by Velo Data. Binance alone shed $2.5 billion in open interest overnight. Options skew turned decisively bearish: Deribit's BTC put/call ratio jumped to 1.28 while ETH's reached 1.25, indicating surging demand for downside protection. Liquidation heatmaps reveal $84 million in vulnerable Bitcoin long positions between $102,000-$104,000. On-chain metrics show Bitcoin dominance rising 0.70% to 64.77%, reflecting capital flight from altcoins. The ETH/BTC ratio fell 3.52% to 0.02412, its lowest since May. Critical correlations emerged: S&P 500 futures' 1.16% drop paralleled crypto losses, while gold's 1.25% gain demonstrated inverse momentum. Upcoming token unlocks pose additional headwinds, including $37.26 million in ZKsync tokens on June 17.

Frequently Asked Questions
How did the Israeli-Iran conflict impact cryptocurrency prices?
The overnight attacks on June 13, 2025, triggered immediate risk aversion, causing Bitcoin to drop 2.9% to $104,889 and Ethereum to fall 8.81% to $2,523 within 24 hours according to CoinDesk market data. The broader CoinDesk 20 Index plunged 6.1% as traders fled to traditional havens like gold and oil.
What derivatives market shifts occurred during the selloff?
Total open interest collapsed by $5.69 billion to $49.31 billion according to Velo data, with Binance shedding $2.5 billion overnight. Put/call ratios for Bitcoin and Ethereum options on Deribit surged to 1.28 and 1.25 respectively, indicating heavy demand for downside protection.
Did spot Bitcoin ETFs maintain inflows during the crisis?
Yes, Farside Investors reported $86.3 million in daily net inflows for spot Bitcoin ETFs on June 13, bringing month-to-date inflows to $939 million. Ethereum ETFs attracted $112.3 million despite the market turmoil.
Which technical levels are critical for Bitcoin and Ethereum recovery?
Bitcoin must hold its 50-day SMA at $103,150 according to CoinDesk technical analysis, while Ethereum needs to reclaim its 200-day EMA at $2,480—a key support level since May.