Early Friday Hong Kong time, Israeli military airstrikes on Iranian nuclear facilities triggered immediate cryptocurrency market turbulence, with Bitcoin plunging to $100,057.87 and Ethereum dropping to $2,200 within hours according to live trading data. This geopolitical escalation caused Asia-Pacific equity markets to tumble, evidenced by Japan's Nikkei 225 falling 1.28% and the Topix index losing 1.22% during Friday's session. Despite this volatility, traditional safe-haven assets surged with gold jumping over 3% to $3,426.95. Crucially, Ethereum demonstrated notable resilience amid the sell-off, maintaining a 40% quarterly gain per CoinMarketCap data cited by CoinDesk analysts. This outperformance against Bitcoin—highlighted by ETH/BTC pair rising 3.145% to 0.02296 within 24 hours—signals shifting capital flows as institutional demand remains robust. U.S. spot ETH ETFs recorded 18 consecutive days of inflows culminating in $240 million on June 11 alone, with total inflows exceeding $1.25 billion since mid-May according to Hex Trust's analysis. Singapore's Monetary Authority simultaneously enacted stringent regulatory measures effective June 30, mandating licensing for offshore exchanges like Bitget and Bybit after years of consultation following the 2022 Financial Services and Markets Act updates. This crackdown directly responds to jurisdictional vulnerabilities exposed by Singapore-registered but operationally absent entities like Three Arrows Capital and Terraform Labs, both of which collapsed in 2022 despite minimal physical presence in the city-state.

Ethereum's technical breakout and regulatory shifts create cross-market trading opportunities. Charmaine Tam, Hex Trust's Head of OTC, notes Ethereum's dominance surged from 7% to nearly 10% within weeks while Bitcoin's dominance fell 2-3 percentage points—a divergence suggesting capital rotation from BTC ETFs toward altcoin sectors like DeFi and AI infrastructure. On-chain data validates this trend with Pendle, Bittensor, and Hyperliquid witnessing substantial inflows alongside rising Ethereum Layer 2 TVL. The Singapore regulatory overhaul accelerates institutional migration toward compliant venues, potentially benefiting CME-listed crypto derivatives which saw 30% volume growth during Asian hours post-announcement. Crypto-equity correlations intensified as S&P 500's 0.38% tech-led rise to 6,045.26 on Thursday failed to offset regional risk aversion, with Bitcoin's 4.241% 24-hour rebound to $105,475 lagging gold's surge. Traders should monitor altcoin pairs like SOL/ETH, which gained 2.595% to 0.068 as Solana outperformed with 8.045% daily gains to $143.57. Singapore's actions mirror global regulatory tightening but may redirect liquidity toward jurisdictions like Dubai, where Three Arrows previously relocated operations pre-collapse per CoinDesk archives.

Technical indicators reveal asymmetric recovery patterns across assets. Bitcoin's 24-hour trading range between $100,057.87 and $105,868 featured $3.295 million volume with RSI rebounding from oversold 28 to neutral 45 by Friday afternoon UTC. Ethereum formed a descending channel before reversing sharply from $2,200 support to $2,404.82, supported by $56.84 million volume and MACD bullish crossover. Altcoins showed stronger momentum as Cardano surged 6.179% to $0.5808 with $29.66 million volume and Avalanche's AVAX/BTC pair jumped 6.733%. Gold-crypto divergence hit extremes with XAU/BTC correlation dropping to -0.87 during the crisis according to TradingView analytics. Institutional flows favored ETH-denominated exposure with ETH/USDC pairs spiking 9.26% versus BTC/USDC's 4.29% gain, while perpetual funding rates turned positive across major altcoins. The MAS regulatory shift coincides with weakening BTC dominance at 51.2%—a 3-month low—amplifying ETH's role as altcoin liquidity anchor. For risk-calibrated entries, monitor ETH's $2,770 resistance break alongside Singapore licensing deadlines, deploying volatility targets around BTC's $102,000-$107,000 consolidation band.

Frequently Asked Questions:
How did the Israeli-Iran conflict immediately impact cryptocurrency prices? Israeli strikes caused Bitcoin to plummet 5% intraday to $100,057 and Ethereum to $2,200 within Asian hours Friday before partial recovery, demonstrating crypto's sensitivity to geopolitical risk events.
Why does Ethereum's performance matter for altcoin traders? Ethereum's rising dominance and institutional ETF inflows signal capital rotation from Bitcoin into altcoins, with ETH serving as a leading indicator for DeFi and AI token rallies.
What prompted Singapore's crackdown on offshore crypto firms? Regulatory changes follow high-profile failures of Singapore-registered entities like Three Arrows Capital and Terraform Labs, which operated overseas with minimal local oversight.