Geopolitical tensions triggered significant crypto market turbulence as Israeli airstrikes on Iranian nuclear facilities on June 13 sparked a global risk-off shift. Bitcoin dropped 2.9% within 24 hours to $104,889.07 by 4 p.m. ET Thursday, while the CoinDesk 20 Index plunged 6.1%, according to CoinDesk market data. Traditional safe havens surged, with gold futures rising 1.3% to $3,445 per ounce and Brent crude oil spiking 14% intraday. The attack occurred hours after the International Atomic Energy Agency reported Iranian uranium enrichment violations, with Prime Minister Netanyahu confirming strikes targeted military leadership. Global equities mirrored the selloff: Japan's Nikkei fell 0.89%, Euro Stoxx 50 dropped 1.37%, and E-mini S&P 500 futures slid 1.16% during Asian trading hours. This abruptly reversed crypto gains fueled by spot ETF optimism, erasing Solana's 9.5% rally following SEC requests for updated S-1 filings noted by Wintermute OTC trader Jake Ostrovskis.

Crypto markets exhibited strong correlation with traditional risk assets, undermining Bitcoin's perceived haven status. Trading opportunities emerged from cross-market dislocations: while oil-linked tokens showed resilience, altcoins faced amplified pressure with SOL plummeting 9.5% and ETH dropping 8.81% over 24 hours. Polymarket data indicates traders price a 91% probability of Iranian retaliation, creating asymmetric hedging opportunities. Institutional flows revealed divergence: spot Bitcoin ETFs recorded $86.3 million daily inflows per Farside Investors, extending the month's $939 million accumulation, yet crypto equities like Coinbase (COIN) fell 3.84% and MicroStrategy (MSTR) dropped 2.63% pre-market. The VIX volatility index spike suggests sustained risk aversion may prolong crypto-stock correlations. Brazil's B3 exchange launch of SOL and ETH futures on June 16 could provide volatility dampening mechanisms, while the GENIUS Act vote on June 17 may impact stablecoin liquidity.

Technical indicators confirmed broad deleveraging: total derivatives open interest plunged from $55 billion on June 12 to $49.31 billion according to Velo data, with Binance shedding $2.5 billion overnight. Put/call ratios surged to 1.28 for BTC and 1.25 for ETH on Deribit, reflecting heightened demand for downside protection. Funding rates turned deeply negative across altcoins, reaching -44.5% for SHIB and -15.2% for DOT on major exchanges. Coinglass liquidation heatmaps identified $84 million in vulnerable long positions between $102K-$104K BTC, with Thursday's $1.16 billion liquidations being 90% long-sided. Ethereum faces critical technical tests at its 200-day exponential moving average near $2,480, while Bitcoin's 50-day SMA at $103,150 serves as major support. Token unlocks present near-term headwinds, including $37.26 million in ZKsync tokens on June 17, potentially exacerbating selling pressure if risk aversion persists.

Frequently Asked Questions
How did the Israel-Iran conflict impact cryptocurrency prices?
The geopolitical escalation triggered immediate risk-off flows, causing Bitcoin to drop 2.9% to $104,889 and the broader CoinDesk 20 Index to fall 6.1% within 24 hours. Altcoins suffered more severe losses, with Solana plunging 9.5% despite recent ETF-related optimism.
What were the major liquidations during the sell-off?
According to CoinGlass, $1.16 billion in positions were liquidated within 24 hours, with 90% being long positions. Bitcoin liquidation heatmaps show $84 million in vulnerable longs between $102,000 and $104,000 price levels.
How did Bitcoin ETFs perform during the event?
Spot Bitcoin ETFs demonstrated resilience with $86.3 million of net inflows on the event day per Farside Investors data, contributing to $939 million of cumulative June inflows despite market turmoil.
What near-term events could affect crypto volatility?
Critical events include Brazil's launch of SOL and ETH futures on June 16, $37.26 million ZKsync token unlock on June 17, and the U.S. Senate vote on the GENIUS stablecoin bill on June 17, all potentially amplifying price movements.