On Friday morning, 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 red hue 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.
The sudden drop was followed by a series of other altcoins falling. Ether (ETH), the second largest coin, recorded an even deeper decline, 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, over $1.15 billion worth of long orders across the market have been wiped out in the past 24 hours.
The number 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 $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, especially US dollars, and exit leveraged or volatile positions to reduce risk.
This sentiment was also shared by Caroline Mauron, co-founder of Orbit Markets, who said that cryptocurrencies are reacting negatively to the news of the airstrike, similar to other risk assets. She predicted that in the short term, geopolitical developments will be the main factor driving prices, rather than technical analysis or on-chain data.
Shortly 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"?
This event has once again sparked a long-standing debate about the role of bitcoin: Is it really a "macro hedge" or a kind of "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 $3,400 an ounce. Crude oil prices also surged, at one point rising more than 9%, on 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 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 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 persist
Analysts warn that market sentiment could continue to deteriorate, 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 mount on 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 cryptocurrency market’s vulnerability to macroeconomic and geopolitical shocks. Despite major strides in institutional adoption and market maturity, bitcoin and other cryptocurrencies have yet to shake off their status as highly volatile and risky assets.
In the short term, investors are advised to remain cautious, monitor developments closely, and have a strong risk management strategy in place. “Hold tight,” as former BitMEX CEO Arthur Hayes warned, suggesting that this may be 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
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