Israel launched air strikes on Iran, tensions in the Middle East increased, and the cryptocurrency market plummeted.
Cryptocurrency Markets Plunge
On June 13, the price of Bitcoin once fell below $103,000 per coin, with an intraday drop of more than 4%.
Other cryptocurrencies also fell, with Ethereum, Dogecoin, and Adacoin all falling by more than 10%.
CoinGlass data shows that in the past 24 hours, more than 240,000 people around the world have been liquidated, with a total liquidation amount of US$1.159 billion. The largest single liquidation order occurred on Binance – BTCUSDT worth US$201 million.
Israel launches attack on Iran
Iran announces closure of country's airspace
Israel enters state of emergency
On the 13th local time, Israel launched a new round of attacks against Iran. This round of attacks included the Iranian city of Tabriz and Kermanshah province. The head of the Crisis Management Center of Iran's East Azerbaijan Province said that three military areas in the province were attacked by Israel.
On the morning of the 13th local time, IDF spokesperson Effie Devlin issued a video statement stating that the Israeli army dispatched more than 200 fighter planes to participate in the first round of air strikes against Iran in the early morning of that day, during which more than 330 munitions were dropped, killing senior Iranian military leaders and other commanders. He also said that Iran has launched more than 100 drones towards Israel in the past few hours, and the Israeli military is currently working hard to intercept these drones. According to preliminary statistics, six Iranian nuclear scientists were killed in the attack.
On the 13th local time, an Iranian security source revealed that Iran’s Supreme Leader Ayatollah Ali Khamenei received a briefing on the situation after the attack. Khamenei said Israel would be severely punished. A spokesman for the Iranian Armed Forces said that Israel will pay a "heavy price" for its attacks on many places in Iran, including residential areas, and the Iranian Armed Forces will definitely respond.
On June 13, local time, Iran announced the closure of the country’s airspace until further notice. In addition, Israeli Defense Minister Katz said that he had declared a state of emergency in Israel due to Israel's attack on Iran.
On the 13th local time, IAEA Director General Grossi had a phone call with Israeli President Herzog. Grossi said that based on the information he has, Iran's Natanz nuclear facility has been severely damaged.
Geopolitical changes drive price trends in the short term
"Cryptocurrencies reacted negatively to the news of Israel attacking Iran, in line with major risk assets." Carolyn Moren, co-founder of crypto derivatives liquidity provider Orbit Markets, said, "We expect to see technical support around $101,000, but geopolitical news will drive price action in the short term."
"While awaiting more geopolitical news and potential responses from Iran, risk sentiment is likely to deteriorate further as traders choose to significantly reduce exposure to risk assets ahead of the weekend." IG market analyst Tony Sycamore wrote in a report.
Hunter Horsley, CEO of Bitwise, said that most of the recent selling has come from holders who bought Bitcoin at a low price a long time ago, with $100,000 being a key threshold. Once Bitcoin breaks through $130,000, another rise may face less selling pressure.
