Why is crypto down today? Bitcoin, Ethereum, Solana sink as Israel strikes Iran

The cryptocurrency market plunged on Friday, June 13, as rising geopolitical tensions in the Middle East rattled investors. 

Following news that Israel had launched a major military operation against Iran, digital assets tumbled sharply. The total crypto market capitalization dropped 7% over the past 24 hours to $3.3 trillion.

Bitcoin (BTC) declined around 5%, trading at $103,464 as of press time. Ethereum (ETH) fell 10% to $2,471, while Solana (SOL) dropped 11% to $141. XRP (XRP) and BNB (BNB) also lost ground, down 6% and 4% respectively.

Data from CoinGlass shows that crypto liquidations surged 125% in a single day, reaching $1.2 billion. Open interest across crypto futures markets fell 9.7% to $142 billion, while the relative strength index sank to 28, indicating the market had entered oversold territory.

Despite the selloff, the Crypto Fear & Greed Index, compiled by software firm Alternative, remained in the “Greed” zone at 61, though down 10 points from the previous day. The drop in sentiment reflects investor uncertainty, as traders assess the risk of broader conflict.

The market turmoil followed an early morning attack by Israel on Iran. According to a Reuters report, Israeli forces hit multiple high-value targets, including uranium enrichment facilities in Natanz, ballistic missile production sites, and the headquarters of Iran’s elite Revolutionary Guard Corps in Tehran. Iranian state media reported the death of General Hossein Salami and civilian casualties, including children.

Israeli prime minister Benjamin Netanyahu said the strikes marked the beginning of “Operation Rising Lion,” a campaign aimed at neutralizing Iran’s nuclear threat. Israel has declared a state of emergency, closed its main airport, and raised air defenses in anticipation of retaliatory attacks.

Iran has promised a “harsh response.” U.S. secretary of state Marco Rubio confirmed the United States was not involved in the strike, emphasizing that American priorities lie in protecting its forces in the region.

Apart from cryptocurrencies, traditional financial markets bore the brunt as well. U.S. stock futures dropped 1.5% across major indexes, and European markets opened lower by a similar margin. Meanwhile, safe-haven assets surged slightly.

Gold rose 0.75% to $3,428 per ounce, and the 10-year Treasury yield dipped to 4.32%. Crude oil, often seen as a geopolitical risk proxy, surged about 10% to $74 per barrel, according to data from Market Watch.

With tensions climbing and the potential for regional war rising, both crypto and global markets could see continued volatility. Risk appetite may weaken further, pushing capital into safer, more liquid assets until the situation stabilizes.