Fresh geopolitical tensions between Israel and Iran sparked sharp declines in crypto and global equities, sending oil prices higher and triggering $1 billion in crypto liquidations as markets brace for further instability.
Global markets reeled overnight after Israel’s preemptive airstrike on Iran’s nuclear infrastructure. The attack sent shockwaves through risk assets, dragging S&P 500 futures below the 6,000 mark and causing safe-haven assets like gold and oil to surge.
According to QCP’s June 13 insights, bitcoin fell nearly 3%, while ether suffered a sharper 9% drop. Volatility spiked across crypto derivatives markets, with traders piling into downside protection ahead of next week’s Federal Reserve meeting.
BTC front-end put options now command a premium of 5 implied volatility points over calls, signaling elevated demand for hedging against further declines.
Meanwhile, crude oil prices surged 11% intraday as fears grew over potential disruptions to global energy supplies. This escalation, if prolonged, could stoke inflationary pressures, complicating the Fed’s rate path.
Adding to market unease was a widespread internet outage affecting Cloudflare and Google Cloud, disrupting services for platforms like Spotify, Discord, and Snap. This tech sector weakness dragged U.S. equities lower, compounding end-of-day selling pressure.
Crypto saw over $1 billion in long liquidations as leveraged traders were flushed out. Yet bitcoin showed resilience, holding above key levels, hinting at continued institutional interest even amid rising geopolitical risk.
With Tehran promising retaliation and diplomacy uncertain, markets remain on edge, ready to react to every headline.


