Israeli airstrikes targeting Iran's nuclear facilities on June 13 triggered a global risk asset selloff, with cryptocurrencies suffering significant losses despite recent ETF-driven gains. According to CoinDesk market data, Bitcoin dropped 2.9% to $104,889.07 within 24 hours of the attacks, while the CoinDesk 20 Index plunged 6.1%. This occurred as traditional havens surged – gold futures rose 1.3% to $3,445 per ounce, nearing record highs. The geopolitical escalation followed the International Atomic Energy Agency's June 12 report confirming Iran's non-compliance with uranium enrichment limits. Global equity markets reacted sharply: Nikkei 225 fell 0.89%, Euro Stoxx 50 dropped 1.37%, and E-mini S&P 500 futures slid 1.16% by June 13 afternoon ET. Oil markets witnessed extreme volatility, with Brent crude spiking 14% intraday before settling 6% higher at $73. These developments erased cryptocurrency gains from earlier ETF speculation, particularly impacting Solana SOL which plunged 9.5% despite rallying previously on SEC requests for updated S-1 filings.

The conflict creates immediate cross-market trading implications as investors shift to risk-off positioning. Polymarket data indicates a 91% probability of Iranian retaliation within June, elevating hedge demand in traditional safe havens while pressuring crypto assets. Spot Bitcoin ETFs recorded $86.3 million daily inflows on June 13 according to Farside Investors, yet failed to offset geopolitical fears. Crypto-correlated equities reflected this stress: Coinbase COIN fell 3.84% to $241.05, while MicroStrategy MSTR dropped 2.63% in premarket trading. The oil surge above $73 introduces secondary inflation risks, potentially delaying Federal Reserve rate cuts – historically negative for crypto valuations. Trading opportunities emerge in volatility arbitrage between correlated assets; the BTC-gold correlation turned sharply negative (-0.87) during the event, while BTC-oil inverse correlation strengthened to -0.92 per CoinDesk metrics. Institutional flows show divergence, with gold ETFs attracting $1.8 billion weekly inflows versus crypto ETFs' $1.75 billion monthly total according to Bloomberg data.

Technical indicators reveal broad market distress, with derivatives markets showing extreme reset. Total open interest plummeted from $55 billion on June 12 to $49.31 billion by June 13 – a monthly low according to Velo data, including a $2.5 billion overnight reduction on Binance. Options positioning turned defensive, with Deribit reporting BTC put/call ratio spiking to 1.28 and ETH to 1.25. Perpetual swap funding rates turned deeply negative: ETH at -7.99% and altcoins like DOT at -15.2% on Deribit, indicating intense short positioning. Coinglass liquidation data showed $1.16 billion positions erased on June 13, 90% being longs. Critical BTC support rests at the 50-day SMA ($103,150), with $84 million long liquidation triggers clustered between $102K-$104K. Ethereum faces technical tests at its 200-day exponential moving average ($2,480), having briefly breached this level intraday. Upcoming token unlocks pose additional pressure, particularly ZKsync's $37.26 million unlock on June 17 representing 20.91% of circulating supply. Volume anomalies emerged in flight-to-safety pairs: BTC/USDT volume surged 38% above 30-day average while gold futures volume hit 12-month highs per CME data.

FAQ
What caused the sudden cryptocurrency market drop? The June 13 Israeli airstrikes on Iran triggered a global flight from risk assets, causing Bitcoin to fall 2.9% and the broader crypto market to drop over 6% within 24 hours according to CoinDesk indices.
How did traditional markets react to the geopolitical event? Global equities declined with Nikkei 225 down 0.89% and S&P 500 futures falling 1.16%, while safe havens surged including gold rising 1.3% and oil spiking up to 14% intraday based on commodity exchange data.
What are key technical levels to watch for Bitcoin? Bitcoin faces critical support at its 50-day simple moving average of $103,150, with approximately $84 million in long liquidation triggers between $102,000-$104,000 according to Coinglass heatmap data.
How did derivatives markets respond? Open interest across major exchanges dropped $5.69 billion within 24 hours to $49.31 billion, while put/call ratios for Bitcoin and Ethereum options rose to 1.28 and 1.25 respectively indicating heightened defensive positioning per Deribit analytics.
What is the market anticipating regarding further escalation? Polymarket traders price a 91% probability of Iranian retaliation within June and a 28% chance of U.S. military involvement, creating ongoing volatility risks according to prediction market data.