Crypto Market in Freefall After Israel's Strikes on Iran: Over $1 Billion Liquidated
On October 13, local time, Israel launched a preemptive attack on Iranian nuclear facilities. The operation, which included airstrikes on dozens of Iranian sites, plunged the Middle East into turmoil, causing a ripple effect across financial markets. The situation precipitated a downturn in major markets, notably the cryptocurrency sector.
Bitcoin witnessed a dramatic fall, dropping below $103,000 as the news of Israel's airstrikes on Iran emerged. The cryptocurrency market as a whole felt the impact of the escalating geopolitical tensions, experiencing a meltdown as a result. Benzinga reported that Bitcoin exhibited a decline, plunging more than 7% over three days and settling at approximately $103,200 on the same day.
The broader financial markets also reacted to these developments. Asian stock markets opened with declines, continuing the downward trend seen in stock futures overnight Thursday. Futures on major indices, including the Dow Jones Industrial Average and the S&P 500, showed losses. Dow Jones Futures tumbled 570 points, a decline of 1.33%, while S&P 500 index futures fell by 1.8%, and bottomed by 1.43% shortly after the news of the bombings was announced.
Volatility in the financial markets extended to the cryptocurrency domain, where over $1 billion was liquidated in 24 hours, with $1.04 billion coming from long positions. The derivative markets were impacted negatively as well, with Bitcoin's Open Interest dropping by 5.69%. Meanwhile, Ethereum's value decreased more than Bitcoin's, with a drop of over 9% in 24 hours, hitting below $2,550. Dogecoin and Solana were also notably affected; Dogecoin fell by over 4%, while Solana experienced a sharper descent of 10.35%, amid the ongoing geopolitical tensions.
The geopolitical landscape remained tense, as Israel's Defense Minister, Israel Katz, indicated that retaliatory strikes on Israel were expected. The Cryptocurrency Fear & Greed Index showed a decrease in market sentiment, with the "Greed" sentiment plunging from 71 to 61 over 24 hours. "The change reflects increasing global economic uncertainty amid the turmoil in the Middle East,".
Maeil Business reported that Israel confirmed the completion of the first phase of its operation, named Nation of Lions. The operation was set to continue over the following days, further influencing market behavior and exacerbating the instability seen in cryptocurrencies. Reports from Reuters and other foreign media confirmed loud explosions northeast of Tehran, indicating military activity in the region.
Ripple (XRP) also saw a downturn, dropping 6.60% to $2.13, while funds locked in Ethereum's outstanding contracts fell by more than 13%, affecting digital assets. Notably, Nasdaq 100 Futures have likewise suffered from the geopolitical developments, losing 1.44%, according to Benzinga. As the Middle East situation evolved, markets worldwide were bracing for continued volatility. Analysts and investors closely monitored the unfolding events as these geopolitical tensions continued to drive market reactions globally, underscoring the interconnectedness of global financial systems and the sensitivity of digital currency markets to geopolitical events.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
DW
2 hours ago
- DW
Israel says Tehran 'no longer immune' to air raids – DW – 06/14/2025
The Kremlin said the pair spoke for 50 minutes over the phone Image: Evan Vucci/AP/dpa/picture alliance Russian President Vladimir Putin and his US counterpart Donald Trump spoke on the telephone on Saturday, the Kremlin said, to discuss the renewed hostilities between Israel and Iran. The two leaders also discussed stalled efforts to achieve a ceasefire in Ukraine, more than three years after Russia invaded its neighbor. Kremlin aide Yuri Ushakov told reporters that Putin had condemned Israel's attacks on Iran, and that the two presidents had not ruled out reviving negotiations with Tehran over its nuclear programme. Russia and Iran are strategic and military allies. Russia is Iran's main supplier of weaponry, while Israel is the biggest recipient of US military aid. After Israel struck Iranian nuclear facilities this week, Trump appeared to imply that the strikes had been launched the day after a 60-day deadline for Iran to come to an agreement on its nuclear activities had passed, saying he had given Tehran "chance after chance." Trump also urged Iran to "make a deal" before "there is nothing left" of the country, warning of more Israeli strikes to come that will be "even more brutal."
Int'l Business Times
2 hours ago
- Int'l Business Times
'We Are Strong': Israelis Defiant Despite Deadly Iran Strikes
Tal Friedlander was grateful to be alive on Saturday after emerging from a bomb shelter in central Israel to find his apartment entirely destroyed by an Iranian missile strike. The shell of a residential building stood at the scene of the hit in Ramat Gan near Tel Aviv, with much of the block reduced to concrete rubble and mangled metal. The debris-strewn street was lined with the wreckage of several destroyed cars, an AFP journalist reported, a rare sight in Israel where advanced air defences usually intercept incoming attacks. Iran hit Israel with waves of drone and missile strikes overnight, with a barrage lighting up the skies over Jerusalem and Tel Aviv, killing three people and wounding dozens. The attack came in retaliation to Israel's massive strikes on the Islamic republic which hit nuclear and military facilities, killed top commanders, nuclear scientists and dozens of civilians, and sought to destroy the country's defence capabilities. Friedlander said he saw interceptions in the sky before the sirens blared out. "We quickly went into the shelter, and after a few minutes we heard a huge boom -- we knew it was something severe," he told AFP. "There was smoke inside the shelter, and the shelter started to break apart a bit. We were afraid to go out," he added. After 10 minutes in the shelter, Friedlander said he left to find his entire apartment completely destroyed. "It's only damage to property," he said. "I have to thank God that we are alive." Air raid sirens and explosions rang out across Israel through the night, with many residents holed up in bomb shelters until home defence commanders stood down alerts. AFPTV footage from central Tel Aviv showed fire and smoke rising from a condo tower, a large hole ripped open by an explosion at its base. "They (Iran) want to destroy us," Friedlander said. "But we are strong... "That's the way it is, we have to keep going, defeat them, until the victory." In a residential area of Rishon LeZion, also near Tel Aviv, first responders stood atop the rubble of collapsed buildings, inspecting the damage. Kobi Cohen said the door of his shelter was blown away by the impact of an explosion which hit nearby. "All the windows, all the doors, all the glass of the windows burst but we survived thank God. That's the most important thing," he said. Cohen said someone was killed following an explosion in a nearby street, but "most people here have experienced wars in their life, so we are not nervous". On the beachfront in Tel Aviv on Saturday, the usually packed bars and restaurants were closed but a few dozen people swam, sunbathed, took selfies and walked dogs, seemingly unfazed by the overnight volley. "We got up, got out of the bomb shelter and went to the beach, had breakfast," said Tal, a resident of neighbouring Jaffa who declined to give his last name. He said previous attacks, including a missile barrage from Iran in April 2024, meant Israelis had become largely used to such events. "I think we've pretty much destroyed their plans of retaliation," he added, referring to Israel's unprecedented attack on Iran which has hit more than 200 military and nuclear sites according to the Israeli army. Dalia Neeman, 77, an artist who lives in Tel Aviv also said she believed Israel's campaign in Iran would "be for the better, for all the world". "Something's supposed to change," she told AFP. Neeman said she felt safe in Tel Aviv despite Iran's deadly retaliation. "We believe in God, trust in God to help us every time," she said.
DW
2 hours ago
- DW
Iran: Death toll from Israeli overnight strikes rises to 78 – DW – 06/14/2025
Nick Holdsworth 06/14/2025 June 14, 2025 Iran's UN ambassador said Saturday that Israeli strikes had killed 78 and wounded more than 320. Meanwhile, Israel said its strikes on nuclear sites killed Iranian military commanders and senior nuclear officials.
