Why Crypto Market Crash Today

The crypto market crashed today, June 13, 2025, primarily due to heightened geopolitical tensions in the Middle East, specifically Israel's military strikes on Iran's nuclear program and other targets. This event triggered a broader sell-off in risk-on assets, including cryptocurrencies, as investors sought safer havens like bonds, gold, and oil. Key details include:

Bitcoin (BTC) dropped by up to 5.6%, hitting a low of $102,700 before recovering slightly above $104,000.

Ethereum (ETH) fell 9.4% to $2,400, while Solana (SOL) and XRP saw losses of 9.6% and 5.8%, respectively.

The total crypto market cap fell 4% to $3.24 trillion, with over $1.1 billion in futures liquidations, mostly long positions, exacerbating the decline.

Posts on X and market analyses highlight panic selling and a "risk-off" mood, with liquidity fleeing to stable assets amid fears of escalating conflict.

Additional factors, such as technical market corrections after a recent rally and fading optimism about U.S. Federal Reserve rate cuts, may have contributed. Historically, crypto markets are volatile and sensitive to macroeconomic and geopolitical shocks, as seen in past crashes like 2022's FTX collapse