Bitcoin plummets, over $1 billion wiped out due to Middle East tensions.

(Dan Tri Newspaper) - Bitcoin price plummeted below $103,000, with over $1 billion in long positions liquidated as investors fled to safe havens amid escalating geopolitical tensions and the Israel-Iran conflict.

On Friday morning, June 13th, global financial markets were shaken by news that Israel had launched a large-scale military operation, codenamed "Operation Rising Lion," targeting multiple objectives in Iran.

This preemptive airstrike reportedly targeted nuclear and military facilities and the residences of high-ranking officials, marking a dangerous escalation in the already tense confrontation between the two Middle Eastern nations.

The market reacted almost immediately. Across exchanges, a sea of ​​red dominated the cryptocurrency market's electronic trading boards. Bitcoin (BTC), the largest cryptocurrency and the market's "locomotive," at one point plummeted by more than 4%, falling from its stable price above $107,000 to below $103,000.

This sudden drop triggered the collapse of numerous other altcoins. Ether (ETH), the second largest cryptocurrency, even saw a deeper decline, at one point losing more than 9% of its value, falling to around $2,500. Other cryptocurrencies such as Solana (SOL), XRP, and Cardano (ADA) also suffered a similar fate, with declines ranging from 5% to 10%.

A massive wave of liquidation and a "sell-off" mentality.

Investor panic is most clearly demonstrated by the liquidation data. According to Coinglass statistics, in the past 24 hours alone, more than $1.15 billion worth of long positions across the market have been wiped out.

This figure is enormous, reflecting the scale of the sell-off and the extent of 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 believe that, in the context of direct military conflict and escalating geopolitical instability, investors tend to prioritize liquidity and safety over long-term investment strategies.

Sean McNulty, head of derivatives trading for Asia Pacific at FalconX, explains: “In times of acute risk like this, liquidity takes precedence over the story.” According to him, traders will quickly shift to holding cash, especially US dollars, and exit leveraged or highly volatile positions to mitigate risk.

This sentiment is also shared by Caroline Mauron, co-founder of Orbit Markets. She believes that cryptocurrencies are reacting negatively to news of the airstrike, similar to other risky 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 operation targeting multiple objectives in Iran, bitcoin briefly dropped by as much as 3%, falling below $103,000 before recovering somewhat (Photo: Bloomberg).

Is Bitcoin still "digital gold"?

This event has once again sparked the ongoing debate about the role of bitcoin: Is it truly a "macro-hedge" or a kind of "digital gold" capable of protecting against crises?

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

This stark divergence has provided further arguments for those who criticize bitcoin's role as a safe haven.

Peter Schiff, an economist and frequent critic of bitcoin, has pointed out that the market's reaction shows investors are still turning to physical gold during times of crisis. He argues that the decline in bitcoin while gold prices rise 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 continue to deteriorate, especially as news of the ongoing conflict shows no signs of abating. Iran has vowed "harsh" retaliatory actions, increasing the risk of a full-scale regional war.

Technically, some analysts suggest that the next key support level for bitcoin could be around $101,000. However, if selling pressure continues to increase due to negative geopolitical news, it's not out of the question that bitcoin could retest even lower price levels, possibly even filling the CME price gap in the $92,000 region.

Clearly, this event serves as a stark reminder of the cryptocurrency market's vulnerability to macroeconomic and geopolitical shocks. Despite significant strides in institutional adoption and market maturity, bitcoin and other cryptocurrencies remain overshadowed by their reputation as highly volatile and risky assets.

In the short term, investors are advised to exercise caution, closely monitor developments, and have a tight risk management strategy. "Hold tight," as former BitMEX CEO Arthur Hayes warned, suggests this may only be a temporary reaction and investors should not panic sell.

Nevertheless, it is undeniable 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