Middle East Conflict Triggers Market Turbulence as Geopolitical Tensions Rise: Bitcoin Drops Below 103K, While Gold and Oil Surge

Global Cryptocurrency Market Hit by Geopolitical Tensions

The global cryptocurrency market has once again been impacted by geopolitical tensions, as Israel launched a preemptive military strike against Iran, triggering panic in the market. Following the news, Bitcoin plummeted by as much as 3%, dropping below $103,000, while the second-largest cryptocurrency, Ethereum, fell by 7.6%. This event not only affected the cryptocurrency market but also sparked a sell-off of risk assets globally, with investors flocking to traditional safe-haven assets.

Israel Strikes Iran, Bitcoin Plummets by 4.5%

In the early hours of June 13, 2025, the Israeli Defense Forces launched a large-scale airstrike on dozens of military and nuclear facilities inside Iran. Israeli Defense Minister Katz declared a state of emergency, calling it a “preemptive strike” against Iran. This sudden event immediately raised concerns in the market about the escalation of conflicts in the Middle East, increasing demand for safe-haven assets. The geopolitical tensions led to significant volatility in global financial markets, with major asset classes showing distinct differentiation. In the midst of the asset sell-off, the cryptocurrency market faced heavy pressure. Bitcoin experienced a sharp 3.62% drop within 24 hours, falling from its high to $103,948, briefly slipping below the $103,000 mark. Ethereum saw an even more dramatic decline, dropping from a high of $2,767 to as low as $2,448, now rebounding to around $2,514.68, with a 9.12% drop within 24 hours. Market panic escalated, causing the overall cryptocurrency market capitalization to shrink to $3.25 trillion within 24 hours, a decrease of 4.25%.

Summary

This week’s market dynamics once again highlighted the profound impact of geopolitical events on the cryptocurrency market. Israel’s military action against Iran caused market turmoil, resulting in significant declines in cryptocurrencies like Bitcoin, showcasing the complex asset attributes of Bitcoin in times of crisis. From a technical perspective, Bitcoin breaking key support levels and entering deep oversold territory poses further downside risks in the short term. However, historical experience shows that geopolitical conflicts are often short-lived, and once the situation eases, market sentiment may quickly reverse. The deeper issue lies in Bitcoin’s asset positioning. During the 2025 Trump tariff war, Bitcoin exhibited certain hedging characteristics, but in acute geopolitical crises, it reverted to its nature as a risky asset. This duality reflects Bitcoin’s ongoing search for its position in the global financial system as an emerging asset class. With increased institutional investor participation and market maturity, Bitcoin may gradually demonstrate stronger hedging properties in the future, but this transition will require time and more market tests.

About BingX

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