Israeli airstrikes targeting Iran's nuclear facilities on June 14 triggered a global flight from risk assets, with cryptocurrencies suffering significant losses despite bitcoin's perceived haven status. According to CoinDesk data, the CoinDesk 20 Index plunged 6.1% over 24 hours while bitcoin dropped 2.9% to $104,889 by 4 PM ET Thursday, underperforming traditional havens like gold futures which gained 1.3%. The attack occurred less than 24 hours after the IAEA reported Iranian non-compliance with uranium enrichment limits, escalating Middle East tensions. Global equity markets reacted sharply: Nikkei 225 fell 0.89%, Euro Stoxx 50 dropped 1.37%, and E-mini S&P 500 futures declined 1.16%. Oil markets saw extreme volatility with Brent crude spiking 14% intraday before settling 6% higher at $73. This geopolitical shock reversed earlier crypto gains driven by ETF optimism, particularly for Solana, which had rallied on June 13 after SEC requests for updated S-1 filings. The market rout demonstrates crypto's persistent correlation with traditional risk assets during geopolitical crises despite institutional inflows. Spot bitcoin ETFs recorded $86.3 million daily inflows on June 14, bringing cumulative flows to $45.29 billion according to Farside Investors data. Trading implications center on risk management as Polymarket traders price a 91% probability of Iranian retaliation this month. The overnight liquidation cascade saw $1.16 billion wiped out across 248,759 traders per CoinGlass, with 90% being long positions. Bitcoin's liquidation heatmap reveals $84 million in vulnerable long positions between $102K-$104K. Derivatives data shows defensive positioning intensified: total open interest collapsed from $55 billion on June 12 to $49.31 billion by June 14 according to Velo data, while Deribit's BTC put/call ratio surged to 1.28. Funding rates turned deeply negative for altcoins with Polkadot at -15.2% and Chainlink at -15.1%. Ether faced critical technical tests, briefly breaking below its 200-day exponential moving average at $2,480 before recovering. Crypto-correlated equities mirrored losses: MicroStrategy fell 1.9% to $379.76, while Coinbase dropped 3.84% to $241.05. The ETH/BTC ratio declined 3.52% to 0.02412, reflecting altcoins' underperformance. Upcoming token unlocks pose additional supply pressure with ZKsync's $37.26 million unlock on June 17 representing 20.91% of circulating supply. Institutional flows toward crypto havens remain contingent on escalation risks, with gold's surge to $3,445 per ounce signaling persistent safe-haven demand. What caused the cryptocurrency market drop on June 14? The 6.1% decline in the CoinDesk 20 Index was triggered by Israeli airstrikes on Iranian nuclear facilities, which escalated Middle East tensions and caused global risk aversion. How did bitcoin perform compared to traditional safe havens? Bitcoin dropped 2.9% while gold futures rose 1.3%, underperforming traditional havens during the flight to safety. What derivatives market changes occurred? Total open interest plunged $5.7 billion to $49.31 billion according to Velo data, with Binance shedding $2.5 billion in positions overnight. Put/call ratios rose to 1.28 for BTC options indicating heightened demand for downside protection. Which tokens face significant supply unlocks? ZKsync's June 17 unlock of 20.91% circulating supply worth $37.26 million and Arbitrum's June 16 unlock of $31.28 million represent notable supply overhangs.