Israeli airstrikes targeting Iran's nuclear facilities on June 13 triggered a global risk-off event, causing immediate cryptocurrency market turbulence. Bitcoin fell 2.9% to $104,889 within 24 hours according to CoinDesk data, while the CoinDesk 20 Index plunged 6.1%. This occurred amid escalating Middle East tensions following Iran's launch of 100 drones toward Israel and the International Atomic Energy Agency's non-compliance report on Iran's uranium enrichment. Traditional markets mirrored the panic: Japan's Nikkei dropped 0.89%, Euro Stoxx 50 fell 1.37%, and S&P 500 futures slid 1.16% as of pre-market June 14. Safe-haven assets surged with gold futures hitting $3,445 per ounce and Brent crude oil spiking 14% intraday. The crypto selloff reversed earlier ETF-driven gains, including Solana's 9.5% decline despite prior optimism about SEC approval for spot SOL ETFs. Polymarket data indicates traders now price a 91% probability of Iranian retaliation this month, compounding market anxiety. Spot Bitcoin ETFs recorded $86.3 million in net inflows on June 13 per Farside Investors, but geopolitical risks overshadowed these institutional flows. The event highlights crypto's persistent correlation with traditional risk assets during geopolitical crises, with the DXY dollar index climbing 0.44% to 98.35 as capital fled emerging markets. The abrupt shift underscores how Middle East conflicts can override fundamental crypto catalysts like regulatory progress, forcing traders to reassess short-term risk exposure across digital assets. Historical patterns suggest such events typically trigger 24-48 hours of volatility before stabilization, making real-time monitoring critical for position management. This conflict-driven repricing demonstrates that even perceived haven assets like Bitcoin remain vulnerable to systemic risk events in the current macro landscape. Trading implications emerge from cross-market dislocations and sector rotations. The simultaneous crash in crypto and equities creates pairs trading opportunities, such as longing gold futures against short Bitcoin positions—a strategy amplified by gold's 1.25% gain versus BTC's 2.42% 24-hour drop. Derivatives data reveals extreme leverage unwinding: total crypto open interest plunged from $55 billion on June 12 to $49.31 billion by June 13 according to Velo metrics, with Binance alone shedding $2.5 billion in OI overnight. Funding rates turned deeply negative for altcoins, hitting -44.5% for SHIB and -15.2% for DOT on Deribit, signaling crowded short positions. Institutional flows show divergence, with Bitcoin spot ETFs absorbing $939 million month-to-date inflows per Farside, yet crypto equities like Coinbase (COIN) fell 3.84% in regular trading. The put/call ratio spike to 1.28 for BTC options at Deribit indicates surging demand for downside protection. Traders should monitor crude oil prices as a leading indicator; a sustained breach above $80/barrel could extend crypto outflows given the 0.78 correlation coefficient observed during past Middle East crises. AI tokens showed no immunity, with FET and RNDR dropping over 10% intraday. Contrarian opportunities exist in oversold assets with imminent catalysts—SOL's 9.5% decline occurred despite Bloomberg ETF analysts maintaining a 90% approval probability by year-end. Technical indicators signal critical support tests across major cryptocurrencies. Ethereum faces a decisive battle at its 200-day exponential moving average near $2,480, with a daily close below this level potentially triggering cascading liquidations. Bitcoin's price tested its 50-day simple moving average at $103,150 during the selloff per CoinDesk analysis, with Coinglass liquidation heatmaps showing $84 million in vulnerable long positions between $102,000-$104,000. Trading volume patterns reveal panic selling: total crypto liquidations hit $1.16 billion on June 13, 90% from long positions according to CoinGlass, while aggregate spot volume surged 40% above the 30-day average. The ETH/BTC ratio fell 3.52% to 0.02412, reflecting altcoin underperformance. Correlation metrics show crypto's 24-hour price action mirrored traditional markets, with S&P 500 futures (-1.16%) and Nasdaq futures (-1.42%) moving in lockstep. On-chain data reveals miner capitulation risks as Bitcoin's hashprice dropped to $52.43/TH/s. Upcoming token unlocks pose additional headwinds, including $37.26 million in ZK tokens on June 17. For tactical entries, watch for RSI divergences on hourly charts; ETH's 4-hour RSI hit oversold territory at 28 during the drop, while BTC's daily Bollinger Band width expanded to 15.2%, signaling elevated volatility. Traders should track oil futures and Polymarket retaliation probabilities as leading sentiment gauges, with Brent crude sustaining above $75/barrel likely prolonging crypto weakness. Critical resistance levels to monitor include Bitcoin's $107,000 weekly high and Ethereum's $2,600 options open interest cluster. The market structure favors range-bound trading until geopolitical clarity emerges, with VIX term structure inversion suggesting sustained risk aversion. Frequently Asked Questions: How did oil prices impact cryptocurrency markets during the Israel-Iran conflict? Brent crude's 14% intraday surge directly correlated with crypto selloffs, as energy shocks historically trigger inflation fears that depress risk assets. Higher oil prices increase stagflation risks, prompting institutional allocators to reduce crypto exposure according to historical CME futures data. What technical levels are crucial for Bitcoin after the selloff? Bitcoin must hold its 50-day SMA at $103,150 to avoid further breakdowns, with Coinglass liquidation maps showing $84 million in long positions at risk between $102,000-$104,000. A daily close above $107,000 would signal recovery potential. How did derivatives markets react to the geopolitical event? Total open interest collapsed by $5.69 billion in 24 hours per Velo data, while put/call ratios spiked to 1.28 for BTC options at Deribit—the highest since April—indicating surging demand for downside protection amid event risk. Which assets showed relative strength during the crash? Gold futures gained 1.25% while stablecoin dominance rose 0.7%, reflecting flight to safety. Within crypto, AAVE and HYPE defied the trend with positive funding rates of +9.95% and +8.27% respectively at Bybit and Hyperliquid.