Bitcoin (BTC) dropped nearly 3% on June 13, 2025, following reports of Israeli airstrikes on Iran, which sparked a wave of panic across global financial markets. The broader crypto market also took a hit, with the CoinDesk 20 Index slipping 6.1%, showing how sensitive digital assets remain to geopolitical shocks.
What Triggered the Drop?
The sudden escalation between Israel and Iran caused a sharp shift in investor sentiment. While Bitcoin is sometimes considered a “digital safe haven,” it reacted like other risk assets, dipping to $104,889.07 as of 4 p.m. ET. In contrast, traditional safe-haven assets like gold climbed 1.3% to reach $3,445 per ounce.
Despite the selloff, spot Bitcoin ETFs managed to attract $86.3 million in net inflows, a sign that institutional investors still see long-term value in BTC despite the immediate volatility.
Altcoins Hit Harder Than Bitcoin
Altcoins suffered sharper declines:
Ethereum (ETH) dropped 8.81% to $2,523
Solana (SOL) fell 9.5%
XRP, however, stood out by gaining 4.76% to $2.18
The divergence highlights how Bitcoin remains a relative safe harbor during market-wide selloffs.
Derivatives Show Bearish Shift
According to derivatives platform Velo, total open interest across exchanges fell from $55 billion to $49.31 billion, signaling reduced trading confidence. Key derivatives insights:
BTC put/call ratio climbed to 1.28, and ETH to 1.25, showing rising demand for downside protection
Funding rates turned negative for several assets, like ETH at -7.99% and DOT at -15.2%
Liquidations hit $1.16 billion, with 90% from long positions, indicating that many traders were caught off guard by the volatility
Technical Levels to Watch
Bitcoin (BTC) is holding above a critical support zone between $102,000 and $104,000, backed by $84 million in open interest. A break below could lead to sharper losses.
Ethereum (ETH) briefly fell below its weekly low of $2,480. A daily close above this level and the 200-day EMA could signal a recovery.
Key Upcoming Events
June 16: Arbitrum’s $31.28M token unlock could add selling pressure
Brazil’s launch of ETH and SOL futures may increase demand
Traders on Polymarket give a 91% chance of further Iranian retaliation, which could fuel more volatility
Should Crypto Investors Be Worried?
While the current selloff is clearly driven by geopolitical risk, it’s important to note:
Bitcoin is outperforming altcoins, reinforcing its status as a more stable digital asset
Institutional inflows remain strong, with $939 million into BTC ETFs and $811 million into ETH ETFs so far this month
These factors suggest that, while volatility is high, long-term confidence in Bitcoin remains solid.
