Bitcoin plummets, more than $1 billion wiped out due to Middle East tensions

(Dan Tri) - Bitcoin price fell sharply below the $103,000 mark, more than $1 billion in long positions were liquidated as investors fled to find safe havens due to escalating geopolitical tensions. Israel - Iran conflict.

On the morning of Friday, June 13, the global financial market was "shaken" by the news that Israel had launched a large-scale military campaign, codenamed "Operation Rising Lion", targeting many targets in Iran.

The pre-emptive air strike, believed to have targeted nuclear and military facilities and the residences of senior officials, marked a dangerous escalation in the already tense confrontation between the two Middle Eastern countries.

The market reaction was almost immediate. Across exchanges, a bright red color covered the electronic boards of the cryptocurrency market. Bitcoin (BTC), the largest digital currency and the "locomotive" of the market, at one point plummeted by more than 4%, falling from a stable price range above $107,000 to below $103,000.

This sudden drop was followed by a series of other altcoins crashing. Ether (ETH), the second largest coin, recorded an even deeper drop, at one point losing more than 9% of its value, falling to the $2,500 region. Other coins such as Solana (SOL), XRP and Cardano (ADA) were not spared the same fate, with drops ranging from 5% to 10%.

Huge wave of liquidation and "runaway" mentality

Investor panic is best illustrated by position liquidation data. According to Coinglass statistics, over $1.15 billion worth of long orders across the market have been wiped out in the past 24 hours alone.

The figure is huge, showing the scale of the sell-off and the losses suffered by leveraged traders. The largest liquidation order was recorded on Binance, with a BTC/USDT position worth up to $201.31 million.

Experts say that in the context of direct military conflict and escalating geopolitical instability, investors tend to prioritize liquidity and safety over long-term investment stories.

“In times of acute risk like this, liquidity takes precedence over narrative,” explained Sean McNulty, head of derivatives trading for Asia- Pacific at FalconX, adding that traders will quickly move into cash, particularly US dollars, and exit leveraged or volatile positions to reduce risk.

This sentiment is also shared by Caroline Mauron, co-founder of Orbit Markets, who believes that cryptocurrencies are reacting negatively to the news of the airstrike, similar to other risk assets. She predicts that in the short term, geopolitical developments will be the main factor driving prices, rather than technical analysis or on-chain data.

Immediately after Israel launched a large-scale military campaign targeting multiple targets in Iran, bitcoin fell as much as 3%, falling below the $103,000 mark before recovering somewhat (Photo: Bloomberg).

Is Bitcoin still "digital gold"?

The event has once again reignited the long-standing debate about bitcoin's role: Is it really a "macro hedge" or a "digital gold" capable of fighting crises?

While the cryptocurrency market was in the red, traditional safe-haven assets benefited. Gold prices jumped more than 1%, surpassing the $3,400/ounce mark. Crude oil prices also surged, at one point rising more than 9%, on concerns about supply disruptions from the world's "oil center" region. Money also flowed into other safe-haven assets such as US government bonds and strong currencies such as the USD, Japanese yen and Swiss franc.

This sharp divergence has provided further ammunition for critics of bitcoin's safe-haven role.

Peter Schiff, an economist and frequent bitcoin critic, pointed out that the market reaction shows that investors still seek physical gold in times of crisis. He argued that the decline in bitcoin while gold prices rose is evidence that bitcoin remains a risky speculative asset, similar to tech stocks, rather than a safe store of value.

Expert opinion: Instability will continue

Analysts warn that market sentiment could deteriorate further, especially as reports of the conflict continue and show no signs of abating. Iran has vowed “harsh” retaliation, raising the risk of a full-blown regional war.

Technically, some analysts believe that bitcoin's next major support level could be around $101,000. However, if selling pressure continues to increase due to negative geopolitical news, bitcoin could retest lower levels, possibly even filling the CME gap in the $92,000 region.

Clearly, this event is a stark reminder of the sensitivity of the cryptocurrency market to macro and geopolitical shocks. Despite major strides in institutional adoption and market maturity, bitcoin and other cryptocurrencies have yet to escape the shadow of a highly volatile and risky asset class.

In the short term, investors are advised to be cautious, monitor developments closely and have a strong risk management strategy. “Hold tight,” as former BitMEX CEO Arthur Hayes warned, suggesting that this may be just a knee-jerk reaction and investors should not panic sell.

However, it cannot be denied that the geopolitical "storm" from the Middle East has been, is and will continue to be a major test of bitcoin's resilience and true role in the global financial system.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-sut-manh-hon-1-ty-usd-bi-xoa-so-vi-cang-thang-trung-dong-20250613185218574.htm