TL;DR
- Bitcoin down 2.9% amid Middle East tensions as Israel attacks Iran.
- Solana drops 9.5% after brief rally on ETF optimism.
- Gold surges 1.3%, oil spikes over 10%, equities decline globally.
- Derivatives markets reset with $1.16B in liquidations, long positions hit hard.
- Investors refocus on geopolitical risk, despite ongoing ETF inflows for BTC and ETH.
Bitcoin Falls as Israel Strikes Iran
The crypto market opened June 13 under heavy pressure following Israel’s overnight airstrike on Iran’s nuclear and missile infrastructure. The geopolitical escalation caused a 6.1% drop in the CoinDesk 20 Index, while Bitcoin (BTC) slid 2.9%, now trading below $104,889. Traditional safe havens responded accordingly, with gold jumping 1.3% and oil surging over 10%.
Israeli Prime Minister Benjamin Netanyahu confirmed the attack was aimed at degrading Iran’s military and nuclear ambitions. The U.S. denied involvement, but Iran retaliated with 100 suicide drones, further escalating fears of a broader conflict.
Global Markets Retreat Amid Risk-Off Mood
The macroeconomic fallout was immediate. Japan’s Nikkei 225 fell 0.9%, while Euro Stoxx 50 dropped 1.35%. U.S. equity futures tumbled by more than 1.2%, while Brent crude oil briefly spiked 14%, nearing $120 amid concerns about shipping disruptions in the Strait of Hormuz.
Global Market Reactions
| Index/Future | Movement | Source Link |
| Nikkei 225 | -0.89% | Nikkei |
| Euro Stoxx 50 | -1.35% | Reuters |
| Brent Crude | #ERROR! | Bloomberg |
| Gold Futures | 0.013 | Investing.com |
Solana Pulls Back After ETF-Fueled Hype
Earlier in the week, Solana (SOL) rallied on news that the SEC requested updated S-1 filings from ETF issuers—a potential green light for future Solana ETF approvals. However, the geopolitical crisis erased these gains. SOL is now down 9.5%, trading near $146.85.
According to Jake Ostrovskis, OTC trader at Wintermute, the market is underexposed to SOL, making it a volatile but closely watched asset. Analysts Eric Balchunas and James Seyffart have maintained a 90% chance of Solana ETF approval by year-end, possibly even as soon as July.
Spot ETF Flows Stay Positive—For Now
Despite the risk-off mood, ETF flows for both Bitcoin and Ethereum remain robust:
Spot ETF Net Flows (June MTD)
| ETF Type | Net Inflow | Total Holdings | Source |
| Bitcoin | $939M | 1.21 million BTC | Farside Investors |
| Ethereum | $811M | 3.92 million ETH | Farside Investors |
The ARKB 3-for-1 share split by 21Shares will execute on June 16, with no change to NAV. Meanwhile, Brazil’s B3 exchange will introduce USD-settled futures contracts for ETH and SOL, potentially increasing LATAM crypto participation.
Derivatives Reset After $1.16B in Liquidations
Crypto derivatives saw significant deleveraging. Open interest (OI) fell from $55B to $49.31B, and options turned defensive, with put-call ratios at 1.28 (BTC) and 1.25 (ETH). Funding rates turned negative, reflecting a shift to bearish sentiment.
Leverage remains high, with notable exposure in BTC between $102K and $104K, untested but volatile levels. BTC dominance remains high at 64.77%, though its ratio to ETH has slipped 3.52% to 0.02412.
Macro Calendar: Stablecoin Vote & G7 Summit
Looking ahead, investors are watching the U.S. Senate’s June 17 vote on the GENIUS Act, a stablecoin regulatory framework. At the global level, the G7 Summit in Canada (June 15-17) will bring further geopolitical dialogue that could shape investor sentiment.
Also notable: Brazil’s ETH and SOL futures launch June 16, while governance proposals like Arbitrum’s $80M DRIP incentive program remain open for voting until June 20.
Technical View: Ethereum Faces Critical Support
ETH dipped below Monday’s low of $2480, near the 200-day EMA, before slightly recovering. A daily close above this level could indicate short-term resilience. Otherwise, further downside could test long-term supports.
BTC, meanwhile, is trading near its 50-day SMA at $103,150, a key pivot in determining whether risk-off sentiment drives additional losses.
Crypto Equities Decline Across the Board
Crypto-related stocks fell sharply:
- Coinbase (COIN): Down 3.84%, pre-market at $236
- Marathon Digital (MARA): Down 3.24%
- Riot Platforms (RIOT): Down 3.22%
- CleanSpark (CLSK): Down 2.61%
- MSTR, Circle, and EXOD also posted losses or muted gains
Final Word: Bitcoin Holds… For Now
Despite significant volatility and geopolitical pressure, Bitcoin has shown relative resilience, outperforming equities and most altcoins. Yet, the market is on edge. Further escalation in the Middle East, particularly involving U.S. forces, could provoke another wave of selling across crypto assets.
For now, ETF flows, institutional exposure, and gold correlations are acting as partial cushions. However, the next 48 hours will be critical in determining whether $103K holds or breaks.
