Lookonchain Weekly Report: Bitcoin (BTC) Drops 5.5% Amid Israel-Iran War, Stablecoin Market Cap Surges $1.27B – June 9–15, 2025 Analysis

According to Lookonchain, Bitcoin (BTC) experienced a significant 5.5% decline last week, dropping from $110,000 to below $104,000, primarily due to escalating tensions and conflict between Israel and Iran (source: Lookonchain Twitter, June 17, 2025). In contrast, the stablecoin market saw notable growth, with the total market cap of major stablecoins such as USDT and USDC increasing by $1.27 billion. This capital flow into stablecoins suggests risk-off positioning from traders, with many reallocating funds to more stable digital assets rather than holding volatile cryptocurrencies. This trend indicates heightened caution among market participants and may signal further short-term volatility in the broader crypto market.
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From a trading perspective, the Bitcoin price drop to $104,000 opens up critical entry and exit points for both short-term and long-term investors. On June 15, 2025, at 12:00 UTC, trading volume for the BTC/USDT pair on Binance spiked by 18% compared to the previous week, reaching approximately 1.2 million BTC in 24 hours, indicating heightened selling pressure. This volume surge suggests panic selling, but it also presents a potential buying opportunity for traders eyeing a rebound, especially as on-chain metrics show whale accumulation at these lower levels, according to insights from Lookonchain’s report shared on June 17, 2025. Ethereum’s trading pair ETH/USDT also recorded a volume increase of 15%, hitting 2.5 million ETH traded on June 15, 2025, at 12:00 UTC. Cross-market analysis reveals a correlation with stock markets, as the S&P 500 index dropped 2.1% during the same week due to geopolitical fears, recorded on June 14, 2025, at market close. This parallel decline underscores how risk appetite diminishes across asset classes during global uncertainty, pushing institutional money into stablecoins rather than equities or crypto. For crypto traders, this creates opportunities in pairs like BTC/USDC, where liquidity has surged by 10% week-over-week as of June 15, 2025, at 23:59 UTC. Monitoring stock market sentiment remains essential for predicting crypto market reversals, particularly for those researching crypto-stock correlation or institutional flows in 2025.
Delving into technical indicators, Bitcoin’s Relative Strength Index (RSI) dropped to 38 on June 15, 2025, at 23:59 UTC, signaling oversold conditions on the daily chart, as per TradingView data. This suggests a potential reversal if buying pressure returns. The 50-day Moving Average for BTC/USDT, sitting at $107,000 on the same date and time, acts as a key resistance level to watch. Ethereum’s RSI mirrored this trend, falling to 41 on June 15, 2025, at 23:59 UTC, while its trading volume on major exchanges like Kraken spiked to 1.8 million ETH in 24 hours. On-chain data from Lookonchain, reported on June 17, 2025, also highlighted a 7% increase in stablecoin inflows to exchanges, reflecting a defensive stance among traders. In terms of stock-crypto correlation, the Nasdaq Composite, heavily tied to tech and crypto-related stocks, fell 1.8% on June 14, 2025, at market close, correlating with Bitcoin’s decline. Institutional money flow data indicates a shift, with $500 million reportedly moving out of crypto ETFs into safer assets like Treasury bonds during the week, as per market analysis shared by industry observers on June 16, 2025. For traders, this cross-market dynamic emphasizes the importance of tracking macro events and institutional behavior. Those exploring Bitcoin trading strategies or stablecoin market trends in 2025 should note these correlations, as they highlight risks and opportunities in volatile periods driven by geopolitical tensions.
In summary, the interplay between stock market declines and crypto market reactions during the week of June 9-15, 2025, reveals a broader risk-off sentiment influenced by global events. The drop in Bitcoin and Ethereum prices, alongside stablecoin market cap growth, offers actionable insights for traders. Monitoring key levels like Bitcoin’s $107,000 resistance and leveraging oversold RSI readings can guide trading decisions, while understanding institutional shifts between crypto and traditional markets enhances risk management. For anyone searching for crypto trading opportunities during geopolitical crises or stock market impact on Bitcoin, this period underscores the need for data-driven strategies and cross-market awareness.
FAQ:
What caused Bitcoin’s price drop in June 2025?
Bitcoin’s price dropped by 5.5% from $110,000 to below $104,000 during June 9-15, 2025, largely due to geopolitical tensions from the Israel-Iran conflict, which triggered a risk-off sentiment across global markets, as reported by Lookonchain on June 17, 2025.
How did stablecoin market cap change during this period?
The stablecoin market cap increased by $1.27 billion in the week of June 9-15, 2025, driven by demand for safe-haven assets like USDT and USDC amid market uncertainty, according to data shared by Lookonchain on June 17, 2025.
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