Israeli airstrikes targeting Iran's nuclear facilities on June 13 triggered a global risk-off event that reverberated through cryptocurrency markets, with Bitcoin dropping 2.9% to $104,889 and the CoinDesk 20 Index plunging 6.1% within 24 hours according to CoinDesk market data. The attack occurred after the IAEA reported Iran's non-compliance with uranium enrichment limits and saw Iran launch 100 suicide drones toward Israel. Traditional markets mirrored the panic, with Japan's Nikkei falling 0.89%, Euro Stoxx 50 down 1.37%, and E-mini S&P 500 futures dropping 1.16% as investors fled to safe havens. Gold surged 1.25% to $3,445 per ounce while crude oil spiked 14% at peak, highlighting the flight from risk assets. This abruptly reversed crypto's earlier gains driven by ETF optimism, particularly for Solana, which had rallied on SEC filing updates before tumbling 9.5% post-strike. Polymarket data indicates traders priced a 91% probability of Iranian retaliation, elevating geopolitical uncertainty as the dominant market driver. The escalation demonstrates crypto's persistent correlation with traditional risk assets during geopolitical crises, contradicting Bitcoin's occasional haven narrative. Spot Bitcoin ETFs recorded $86.3 million inflows on the day according to Farside Investors, but failed to offset broader risk aversion as traders prioritized capital preservation over speculative positions. Trading implications emerge from the sharp divergence between traditional safe havens and crypto assets. Oil's 14% intraday spike and gold's approach toward all-time highs signal sustained risk-off sentiment that may prolong crypto volatility. The event triggered $1.16 billion in crypto liquidations according to CoinGlass, with 90% coming from long positions – the largest single-day deleveraging event since May. Derivatives markets flashed warning signs as total open interest plummeted from $55 billion on June 12 to $49.31 billion, with Binance alone shedding $2.5 billion in positions. Put/call ratios surged to 1.28 for BTC and 1.25 for ETH on Deribit, reflecting heightened demand for downside protection. Negative funding rates deepened across altcoins, hitting -44.5% for SHIB perpetuals, while crypto equities like Coinbase fell 3.84% and Circle dropped 9.1% in sync with the selloff. This cross-market correlation presents tactical opportunities: historical data shows crypto typically rebounds faster than equities post-geopolitical shocks, creating potential mean-reversion setups. Monitoring institutional flows via ETF data becomes critical, as sustained inflows despite volatility could signal accumulation. Technical indicators reveal critical support levels tested during the selloff. Ether breached its $2,480 daily low before recovering, with the 200-day exponential moving average at this level serving as make-or-break support since May. Bitcoin's liquidation heatmap shows $84 million in long positions clustered between $102,000-$104,000 – a breach could accelerate selling. The BTC dominance index rose 0.7% to 64.77, indicating relative resilience versus altcoins. On-chain metrics show hashprice at $52.43 with hashrate holding steady at 928 EH/s, suggesting miner capitulation remains unlikely. Correlations strengthened with traditional markets: DXY rose 0.44% to 98.35, amplifying pressure on dollar-denominated crypto pairs, while oil's surge historically precedes crypto volatility spikes. Upcoming token unlocks pose additional headwinds, particularly ZKsync's $37.26 million unlock on June 17 representing 20.91% of circulating supply. Traders should watch ETH's ability to hold $2,480 and BTC's defense of the $102K-$104K liquidity zone for signs of stabilization, while monitoring G7 summit statements and the U.S. Senate's GENIUS Act vote for regulatory catalysts. The key question remains whether crypto decouples from traditional risk assets if Middle East tensions persist, or continues mirroring equity market reactions to geopolitical shocks. What caused the sharp cryptocurrency selloff on June 13? The selloff was triggered by Israeli airstrikes on Iranian nuclear facilities, which escalated Middle East tensions and sparked a global flight from risk assets. This caused Bitcoin to drop 2.9% and the broader CoinDesk 20 Index to fall 6.1% within 24 hours according to real-time market data from CoinDesk. How did derivatives markets react to the geopolitical event? Derivatives markets saw dramatic deleveraging with total open interest dropping to $49.31 billion, a monthly low, as reported by Velo data. Put/call ratios surged to 1.28 for Bitcoin and 1.25 for Ethereum on Deribit, indicating heightened demand for downside protection. Funding rates turned deeply negative for most altcoins, reaching -44.5% for SHIB perpetuals. Did spot Bitcoin ETF flows continue during the selloff? Yes, spot Bitcoin ETFs recorded $86.3 million in net inflows on June 13 according to Farside Investors data, extending the month-to-date total to $939 million. This suggests institutional investors maintained accumulation strategies despite retail panic. What technical levels are critical for Ethereum's price stability? Ethereum faces crucial support at $2,480, which aligns with both Monday's low and the 200-day exponential moving average. A daily close below this level could trigger additional liquidations, while holding above it may indicate market stabilization. How might upcoming token unlocks impact markets? Significant token unlocks include ZKsync's $37.26 million unlock on June 17 representing 20.91% of circulating supply, and Arbitrum's $31.28 million unlock on June 16. These events typically increase selling pressure, particularly when coinciding with risk-off environments.