The cryptocurrency market experienced a sharp decline on June 13 due to escalating geopolitical tensions in the Middle East, triggered by Israel's military operation against Iran.
Fall of Cryptocurrencies Amid Conflict
Following news of Israel's major military operation against Iran, the total cryptocurrency market cap dropped by 7% over the past 24 hours to $3.3 trillion. Bitcoin fell by 5%, Ethereum decreased by 10%, and Solana dropped by 11%.
Reactions to Recent Events
According to CoinGlass, crypto liquidations surged by 125% in a single day, totaling $1.2 billion. Open interest in crypto futures markets fell by 9.7% to $142 billion. The relative strength index also sank to 28, indicating the market is in oversold territory. Despite this, the Crypto Fear & Greed Index remained in the 'Greed' zone at 61.
Consequences for Financial Markets
In addition to cryptocurrencies, traditional financial markets faced significant pressure as well. U.S. stock futures fell by 1.5%, and European markets opened lower by a similar margin. Meanwhile, safe-haven assets such as gold rose by 0.75%, and the price of oil surged about 10%.
Geopolitical tension and the potential for regional conflict continue to exert pressure on cryptocurrency and financial markets. As events unfold, risk levels may rise further.
