The crypto market plunged over 7% amid escalating Israel-Iran conflict, renewed Trump tariff threats, and over $1.2B in liquidations. Bitcoin, Ethereum, and XRP led the selloff, while investors brace for further volatility driven by geopolitical risks, macro uncertainty, and massive options expiry.
The global cryptocurrency market suffered a severe blow on Friday, 13 June, with major digital assets plunging in response to a storm of negative catalysts, including geopolitical conflict, renewed U.S. trade tensions, macroeconomic concerns, and widespread liquidations.
Bitcoin, Ethereum, and XRP Lead the Drop
The price of Bitcoin (BTC) tumbled to an intraday low of $102,000, marking a 7% drop over the past 48 hours. Ethereum (ETH) and XRP followed suit, plummeting 10% and 7% respectively within the last 24 hours.
As of press time, Bitcoin had recovered slightly to trade around $104,155, while Ethereum was at $2,507 and XRP price at $2.11.
Overall, the global cryptocurrency market capitalization fell by over 7% in 24 hours to $3.3 trillion, according to CoinGlass data.
Israel-Iran Conflict Ignites Investor Fear
Markets were roiled early Friday by news that Israel launched a preemptive military strike on Iran, targeting strategic nuclear and military sites.
The attack reportedly resulted in significant casualties, including Iranian military leaders and civilians. Iranian officials have vowed a “harsh response,” raising fears of a broader regional war.
Israeli Prime Minister Benjamin Netanyahu declared the beginning of Operation Rising Lion, aiming to dismantle Iran’s nuclear capabilities. In response, Israel closed its main airport and raised national defenses to the highest level.
The White House swiftly issued a statement distancing the U.S. from the attack. Secretary of State Marco Rubio reiterated that the United States was not involved and that protecting American personnel in the region remains the top priority.
The geopolitical fallout immediately triggered a flight to safety: gold rose 0.75% to $3,428/oz, while crude oil spiked nearly 10% to $74 per barrel.
JPMorgan warned that oil could reach $120 if the conflict escalates, potentially pushing U.S. inflation back up to 5% from its recent 2.4% level.
Trump’s Tariff Threats Add to Market Volatility
Uncertainty deepened as former President Donald Trump signaled a return to protectionist trade policy. Trump announced plans to reintroduce sweeping tariffs aimed at pressuring U.S. trading partners, adding fuel to investor concerns.
While Treasury Secretary Scott Bessent hinted at a possible extension to the current 90-day tariff pause, markets reacted cautiously.
The fading optimism over a potential trade deal between the U.S. and China, combined with Trump’s demand for a 100 basis point Fed rate cut, compounded fears of macroeconomic instability, sending both traditional and digital markets into a tailspin.
$3.7 Billion in Options Expiry Sparks Liquidation Avalanche
One of the key technical drivers of Friday’s market crash was the expiry of over $3.7 billion in crypto options on Deribit. This includes 28,000 BTC options (worth over $3 billion) and 242,000 ETH options (worth $700 million).
The high volatility surrounding these expiries led to sharp position unwinding. BTC’s put-call ratio of 0.95 and Ethereum’s more bearish 1.20 reading reflected a shift in trader sentiment. The “max pain” points, $107,000 for BTC and $2,700 for ETH, indicated likely retracement levels.
CoinGlass data confirmed that crypto liquidations surged over 125% in one day, crossing $1.2 billion. An astonishing $930 million of long positions were wiped out in just 12 hours. The largest liquidation was a $201 million BTCUSDT order on Binance.
Over 247,000 traders were liquidated, with BTC and ETH accounting for the lion’s share of losses. Whales also contributed to the selloff, as seen with one notable wallet depositing 1,000 BTC (worth $106 million) to Binance after accumulating it at an average price of $18,665.
Support Levels Breached Across the Board
Bitcoin broke below its key support level at $106,000 and the June open, setting off a cascade of forced selling.
Ethereum mirrored this weakness, dropping below its $2,650 support. XRP also failed to hold above $2.20, despite positive sentiment stemming from Ripple’s ongoing legal resolution efforts with the U.S. SEC.
Solana (SOL) plunged 11% to $141, Dogecoin (DOGE) fell 2.5% to $0.19, and Binance Coin (BNB) slipped 4% to $597. Altcoins across the board suffered as the crypto market entered oversold territory, with the Relative Strength Index (RSI) dropping to 28.
Interestingly, despite the carnage, the Crypto Fear & Greed Index remained in the “Greed” zone at 54.
A “Bull Trap” or Start of a Deeper Correction?
Thursday’s market behavior now looks like a classic “bull trap.” Initially, crypto assets rallied following a surprisingly low U.S. CPI reading of 2.4%, but this optimism was swiftly replaced by fear amid cascading liquidations, geopolitical risk, and technical breakdowns.
Analysts say the market had already shown signs of weakening demand, especially for Bitcoin. According to CoinPanel’s Dr. Kirill Kretov, “Macroeconomic uncertainty is still high, and with thin liquidity, even moderate players can move prices significantly.”
What Comes Next? Analyst Outlooks
Despite current volatility, many experts maintain a bullish long-term view:
1. Bitcoin (BTC): Analysts forecast consolidation between $100,000–$120,000. Bitfinex projects $115,000 by early July, while Fundstrat’s Tom Lee suggests a year-end target between $150,000 and $250,000.
2. Ethereum (ETH): A summer rally could see ETH revisit $2,800–$3,000 levels, supported by rising institutional interest.
3. XRP: The June 16 SEC lawsuit outcome remains a key catalyst. A favorable verdict could ignite a rally above $2.50, while a negative ruling may push it toward $1.80 or lower.
4. Dogecoin (DOGE): Technical resistance at $0.25 remains a barrier. Without fresh momentum, a dip toward $0.15 is possible.
Conclusion: A Cautionary Turning Point
Friday’s meltdown was a sobering reminder of the fragility of risk assets in a high-volatility, high-uncertainty environment. Whether this marks the start of a broader downtrend or a temporary correction remains unclear.
What is certain, however, is that traders and investors alike are in for a turbulent ride ahead, as global tensions, U.S. politics, and market mechanics continue to collide.
As the world watches developments in the Middle East and the financial markets react, one thing is clear: the age of crypto is no stranger to chaos, and opportunity.
This press release has also been published on VRITIMES
