Why is crypto crashing today? The answer lies in rising geopolitical tensions, as a major military strike by Israel on Iran has triggered a broad market sell-off, pushing Bitcoin and altcoins lower.
Early Friday, Israel launched a major airstrike operation, Operation Rising Lion, hitting over 100 targets across Iran. The attack targeted suspected nuclear and military sites in Tehran and Tabriz, and also killed several civilians, including a child. This expected escalation has tanked the global financial markets, with crypto among the hardest hit.
In the immediate aftermath, Bitcoin (BTC) dropped more than 4%, falling from around $108,000 to as low as $103,500. Ethereum (ETH) followed suit, declining by over 5%. The move downward was worsened by cascading liquidations of leveraged long positions, with over $400 million in crypto futures wiped out in a matter of hours.
Crypto market shakes out to $1 Billion liquidations after Israel attack on Iran. $BTC and $ETH shown much down but this has been remained history as bitcoin down in conflicts it pull back strongly.
These are the buying moments but challenging to find out exact buying zone. pic.twitter.com/4BLevqwanC
— Mark.eth🥷 (@MarkETHreal) June 13, 2025
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Why is Crypto Crashing Today? Gold and Oil Surge, But Analysts Say Bitcoin Could Rebound
While gold and oil prices have climbed 1.44% and 11% respectively over the past 24 hours amid rising geopolitical tensions, some crypto analysts believe Bitcoin may soon reverse its current downturn.
Bitcoin entrepreneur Anthony Pompliano pointed out that although traditional safe-haven assets like gold and oil are gaining while Bitcoin is slipping, similar setups in the past have seen the trend quickly flip.
He referenced the October incident when Iran launched hundreds of rockets at Israel in retaliation for Israel’s assassinations of Hamas leader Ismail Haniyeh in Tehran, Hezbollah leader Hassan Nasrallah, and IRGC general Abbas Nilforoushan.
Bitcoin initially dropped by 3%, but outperformed both gold and oil within 48 hours.
“This initial reaction is exactly what happened last time,” Pompliano said. “Bitcoin ended up outperforming the other two over the first 48 hours in that situation.”
The market remains on edge as uncertainty lingers over how the situation between Israel and Iran will unfold.
Crypto markets were already primed for a correction. Bitcoin had recently rallied toward all-time highs amid ETF-driven optimism and bullish technical momentum. Analysts had warned that the market was overheated, making it vulnerable to any negative catalyst such as a sudden geopolitical event like this.
(BTCUSDT)
Bitcoin is currently holding key support near $103,000 after a pullback from recent highs above $110,000. The 4-hour chart shows BTC is retesting this critical zone, which previously acted as resistance.
A successful hold here could confirm a bullish retest and set the stage for another move higher. If the level fails, the next major support lies around $98,500.
Despite short-term cooling, the broader trend remains bullish following May’s breakout above a long-term downtrend.
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Key Takeaways
- Why is crypto crashing today? Israel’s large-scale airstrike on Iran spooked global markets, causing a sharp risk-off reaction across crypto and equities.
- $400M in crypto liquidations. Cascading liquidations wiped out over $400 million in leveraged positions, amplifying the downturn and adding volatility.
- Bitcoin fell over 4% to around $103,500, while Ethereum dropped more than 5%, led by panic selling and liquidations.
- Safe havens rise, Bitcoin may rebound. Gold and oil surged, but analysts note past events saw Bitcoin rebound and outperform both within 48 hours.
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