Bitcoin Dips as Middle East Tensions Escalate: Iran Vows Retaliation After Israeli Strikes
June 13, 2025 — Bitcoin ($BTC) slipped 2% in early trading, falling to $104,971, amid intensifying geopolitical tensions in the Middle East. The decline comes in the wake of Israel’s expansive military campaign, Operation Rising Lion, which targeted more than 100 strategic sites across Iran, including nuclear and military facilities.
The strikes resulted in the deaths of key Iranian military figures, including Gen. Hossein Salami and Gen. Mohammad Bagheri, prompting an immediate and forceful response from Tehran. The Islamic Revolutionary Guard Corps (IRGC) has promised "severe retaliation" against both Israel and the United States, which Iran accuses of having prior knowledge and strategic involvement in the operation.
In retaliation, Iran launched over 100 drones toward Israel, significantly heightening fears of a broader regional conflict. As both nations closed their airspace and military alerts intensified, global markets reacted swiftly.
While traditional safe-haven assets like gold and U.S. Treasury bonds saw increased demand, Bitcoin—which has often been considered "digital gold"—saw a modest pullback. This reflects investor caution as markets weigh the potential for further instability and its impact on risk-sensitive assets.
> “Bitcoin’s decline is likely a short-term response to heightened uncertainty,” said crypto analyst Lina Porter. “Despite being viewed as a hedge by some, in times of extreme geopolitical stress, liquidity often trumps ideology—leading to short-term selloffs.”
Meanwhile, Ethereum ($ETH) fell sharply by 6.97%, while broader equity markets showed mixed responses. The S&P 500 ETF (SPY) edged up 0.36%, and Gold ETF (GLD) rose 1.23%—highlighting a shift toward more traditional hedging instruments.
With the situation developing rapidly, crypto markets remain on edge. Traders and investors are closely monitoring statements from world leaders and military movements across the region. Any further escalation could prompt increased volatility across digital and traditional financial markets.
