What’s Driving Today’s Crypto Market Downturn?

Crypto markets plunged after Israel’s strike on Iran sparked global volatility, though technical patterns hint at a continued bullish trend ahead.

Crypto Market Cap Sheds 4% in 24 Hours

The total crypto market value dropped to $3.24 trillion on June 13 following Israel’s military action in Iranian airspace, sparking global concern.

Middle East Conflict Pressures Risk Assets

Markets reacted swiftly as Israeli forces targeted nuclear sites in Iran. Tensions raised fears of retaliation, sending risk assets like crypto lower.

Global Investors Flee to Safe Havens

As war fears rose, investors dumped volatile assets. Gold, oil, and government bonds gained ground, while Bitcoin fell sharply before rebounding.

Bitcoin and Altcoins Hit Hard by Sell-Off

BTC briefly dropped 5.6% to $102,700. ETH fell 9.4% to $2,400, while XRP and SOL declined 5.8% and 9.6%, respectively, highlighting broad weakness.

Stocks Join the Decline Amid War Fears

U.S. stock index futures dropped, mirroring crypto’s retreat. Investors responded defensively as the broader financial markets showed anxiety.

Safe-Haven Assets Rally Amid Escalation

As tensions spiked, oil surpassed $72/barrel for the first time in months. Analysts noted the market was “pricing in” the threat of a wider war.

Futures Market Suffers $1.15 Billion Liquidations

The day’s drop was compounded by heavy liquidations: $1.15 billion in 24 hours, including $1B in longs — the largest single-day wipeout since February.

BTC, ETH Lead in Liquidated Longs

Bitcoin accounted for $448.1M in liquidations, while Ether saw $288.4M. Solana, DOGE, and XRP followed, with notable losses across the board.

Liquidation Cascade Adds to Fear

Massive long liquidations accelerated the sell-off. Fear spread quickly among traders, increasing pressure and forcing more positions to close.

Was the Pullback a Technical Reset?

Despite the correction, the broader trend may remain bullish. Crypto’s total market cap had jumped 51% since March before the latest dip.

Bull Flag Pattern Still Intact

The price formed a bull flag, with support now at $3.1T. If the pattern holds and breaks upward, a 58% rally could lift market cap to $5.05T.

RSI Suggests Momentum Remains Positive

With RSI at 57, bullish momentum still lingers. The technical setup implies crypto could rebound once market nerves settle.

Risk of Further Decline Remains

If the market closes the week below $3.1T, losses may deepen toward the 50-day SMA at $2.75T, or even the flag’s base at $2.31T.