Early Friday Hong Kong time, Israel's military conducted airstrikes against Iranian nuclear facilities, triggering immediate cryptocurrency market turbulence. Bitcoin plunged to $100,057 according to real-time trading data before recovering to $105,475 within 24 hours, reflecting a 4.4% price surge. Ethereum similarly dipped to $2,200 before rebounding to $2,404.82, posting a 7.1% 24-hour gain. This geopolitical shock occurred alongside Singapore's Monetary Authority implementing stringent licensing requirements for offshore crypto exchanges effective June 30, forcing platforms including Bitget and Bybit to exit the market. Regulatory changes stem from past incidents involving Singapore-registered but operationally offshore entities like Three Arrows Capital and Terraform Labs, both linked to catastrophic 2022 collapses. According to Charmaine Tam, Head of OTC at Hex Trust, these developments coincide with measurable shifts in market structure, notably Ethereum's dominance rising from 7% to 10% as capital rotates from Bitcoin into altcoins. This trend is substantiated by CoinMarketCap data showing ETH's 40% quarterly gain, outperforming both Bitcoin and the CoinDesk 20 Index despite recent volatility. Singapore's regulatory evolution signals a global pattern where jurisdictions demand physical presence for licensing, eliminating paper-based registrations that previously enabled regulatory arbitrage following high-profile failures. The dual pressure of geopolitical risk and regulatory tightening frames a complex Asian trading session where traditional safe havens like gold surged 3% to $3,426.95 while risk assets initially faltered. Ethereum's resilience amid these headwinds underscores its emerging role as a liquidity anchor for decentralized ecosystems, particularly with U.S. spot ETH ETFs attracting $1.25 billion since mid-May according to institutional flow reports. Trading implications emerge from the divergence between Bitcoin and Ethereum performance, signaling capital rotation into altcoins. Ethereum's rising dominance correlates directly with Bitcoin's 2-3% dominance decline, indicating investor appetite shifting from Bitcoin ETF narratives toward emerging sectors like DeFi and decentralized AI. This transition manifests in on-chain metrics: Pendle, Bittensor, and Hyperliquid recorded substantial inflows while Ethereum Layer 2 networks showed increased activity. Cross-market analysis reveals crypto's sensitivity to equity movements, with Japan's Nikkei 225 dropping 1.28% post-airstrike, contrasting the S&P 500's prior 0.38% gain driven by Oracle's earnings. Gold's surge highlights flight-to-safety behavior that temporarily pressured cryptocurrencies, though crypto's rapid recovery suggests decoupling from traditional risk assets during acute geopolitical events. Trading opportunities exist in volatility arbitrage between correlated pairs—ETH/BTC gained 3.1% to 0.02296 while altcoins like Solana and Cardano outperformed with 8.2% and 6.8% 24-hour rallies respectively. Institutional participation remains pivotal, with ETH ETF inflows creating structural support near $2,400 despite technical resistance at $2,434. Singapore's regulatory shift may accelerate capital migration to compliant jurisdictions, potentially benefiting Hong Kong and Dubai-based exchanges. Technical indicators reveal critical support and resistance levels across major pairs. Bitcoin's 24-hour trading range between $100,057 and $105,868 saw highest volume on BTC/USDT pairs at Binance, totaling 14,141 BTC. Ethereum faces immediate resistance at $2,434 with descending channel patterns indicating consolidation, though RSI readings at 58 avoid overbought territory. Volume analysis shows ETH/USDT pairs dominated activity with 499,555 ETH traded, exceeding Bitcoin's volume intensity. The ETH/BTC pair's 3.1% surge to 0.02296 confirms capital rotation from Bitcoin into altcoins, historically preceding broader altseason breakouts. On-chain TVL growth in Ethereum L2s like Arbitrum and Optimism provides fundamental validation. Market correlations shifted during the event: Bitcoin's 4-hour beta to gold turned negative during the initial sell-off but rebounded as institutional flows entered. The S&P 500's tech-led resilience provided late-session support for crypto assets, particularly AI-related tokens. Bittensor's ecosystem tokens surged alongside AI stock performers like Nvidia, demonstrating persistent thematic capital allocation. Singapore's regulatory overhaul introduces jurisdictional risk premiums for exchanges without physical presence, potentially increasing volatility for tokens like WazirX's WRX. Trading strategies should monitor ETH dominance thresholds at 10.5% as breakout confirmation and track Singapore-licensed entities like Independent Reserve for regulatory arbitrage opportunities.