Geopolitical tensions escalated sharply as Israeli airstrikes targeted Iran's nuclear and missile sites on June 13, 2025, triggering a broad risk-off sentiment across global markets. Bitcoin (BTC), often viewed as a digital haven, dropped 2.42% over 24 hours to $104,889.07 by 4 p.m. ET Thursday, while Ethereum (ETH) plummeted 8.81% to $2,523.28, according to market data. The CoinDesk 20 Index, representing the broader crypto market, lost 6.04% during the same period, reflecting widespread sell-offs amid fears of escalating Middle East conflicts. In contrast, traditional safe havens like gold futures surged 1.25% to $3,445.00 per ounce, and U.S. crude oil prices spiked over 6%, highlighting a flight to conventional assets. Jake Ostrovskis, an OTC trader at Wintermute, explained that the overnight attack disrupted earlier gains driven by ETF optimism, particularly for Solana (SOL), which had rallied on SEC-related news but reversed to a 9.5% decline in the past day.

Derivatives markets showed significant stress, with total open interest across top venues like Binance, OKX, and Deribit plunging from a peak above $55 billion on June 12 to $49.31 billion—a monthly low—as per Velo data. Binance alone shed over $2.5 billion in open interest overnight, indicating broad risk reduction. Options positioning turned defensive, with the BTC put/call ratio rising to 1.28 and ETH's to 1.25 on Deribit, signaling heightened demand for downside protection despite lingering interest in upside strikes like $140,000 for BTC and $3,200 for ETH. Funding rates remained negative, with ETH at -7.99% annualized on Deribit and altcoins like Polkadot (DOT) at -15.2%, reflecting bearish sentiment. Coinglass data revealed $1.16 billion in liquidations over 24 hours, with 90% coming from long positions, underscoring overleveraged bets. Key liquidation zones for BTC between $102,000 and $104,000 hold $84 million in open interest, acting as potential downside amplifiers if breached.

Institutional flows provided a silver lining, with spot Bitcoin ETFs recording a daily net inflow of $86.3 million and cumulative holdings reaching $45.29 billion across approximately 1.21 million BTC, according to Farside Investors. Ethereum ETFs saw $112.3 million in net inflows, boosting total ETH holdings to 3.92 million. Month-to-date, BTC funds attracted $939 million and ETH $811 million, suggesting sustained institutional interest despite the turmoil. Bloomberg ETF analysts Eric Balchunas and James Seyffart maintain a 90% probability for Solana ETF approval by year-end, potentially accelerating timelines. However, market focus shifted to geopolitical risks, with Polymarket traders pricing a 91% chance of Iranian retaliation this month. Upcoming token unlocks, including $31.28 million worth of Arbitrum (ARB) on June 16 and $37.26 million for ZKsync (ZK) on June 17, could add selling pressure, while events like Brazil's B3 exchange launching ETH and SOL futures on June 16 offer new trading avenues.

Technical analysis indicates critical levels for traders to monitor. ETH faces resistance at the daily order block, recently dipping below Monday's low of $2,480 before reclaiming it; a close above this level, aligned with the 200-day exponential moving average, would signal strength. BTC's price hovered near its 50-day simple moving average at $103,150, with support around $102,000-$104,000 being crucial. SOL showed resilience with a 3.244% gain to $146.74 in USDT pairs, while altcoins like Cardano (ADA) rose 1.658% to $0.5581. For trading opportunities, watch for bounces at key supports like ETH's $2,480 or BTC's $102,000, but remain cautious of geopolitical escalations that could trigger further liquidations. The shift in oil prices and gold movements serve as sentiment indicators, with potential disruptions in the Strait of Hormuz threatening to drive oil above $100, per a commodities strategist.