Market Reacts to Israel’s Strike on Iran
The global crypto market experienced a significant downturn on June 13, with the total market capitalization falling 4% to $3.24 trillion. The sharp decline followed a military operation by Israel targeting Iranian nuclear facilities and strategic sites.
This heightened geopolitical tension has shaken investor confidence and led to mass liquidation across crypto markets.
Over $1 Billion in Longs Liquidated
The geopolitical shock sparked extreme market volatility, resulting in over $1.15 billion in crypto futures liquidations, with more than $1 billion in long positions wiped out.
This wave of liquidations has added fuel to the price drop, amplifying selling pressure across major cryptocurrencies.
Investors reacted quickly, moving out of risk assets like crypto as uncertainty around Iran’s possible retaliation intensified.
Bitcoin and Altcoins Take a Hit
Bitcoin (BTC) dropped by as much as 5.6%, hitting a low of $102,700 on Bitstamp before slightly recovering to trade above $104,000. Meanwhile, Ethereum (ETH) plummeted 9.4%, falling to $2,400 before bouncing back to around $2,513.
Other major altcoins also suffered heavy losses:
- XRP fell by 5.8%, now trading at $2.13
- Solana (SOL) dropped 9.6% to $145.02
The rapid sell-off reflects both macroeconomic fear and automated stop-loss triggers cascading across leveraged trades.
Bull Flag Still Suggests Uptrend Intact
Despite the drop, technical analysts point out that the overall market structure remains bullish. The total crypto market cap still forms a bull flag pattern, a continuation signal that often precedes a strong upward breakout.
If geopolitical tensions ease, the market could quickly recover and resume its upward trend.
Conclusion: Temporary Dip or Start of a Trend?
The crypto market’s 4% drop on June 13 is largely driven by geopolitical instability following Israel’s actions in Iran. With investor sentiment shaken, markets are reacting cautiously.
As long as macro fundamentals and long-term demand remain strong, this may present a short-term correction—not a reversal.
Watch for upcoming developments in the Middle East, as well as institutional buying behavior, to determine whether this is a buy-the-dip opportunity or the start of deeper correction.