On June 13, 2025, Israel initiated Operation Rising Lion, a sweeping and unprecedented military action against Iran. Using over 200 aircraft and coordinated Mossad activity, the strike targeted approximately 100 key locations including nuclear facilities in Natanz and Fordow, ballistic missile factories, and residences of senior IRGC commanders such as Hossein Salami. The attacks aimed squarely at decapitating Iran’s nuclear and military leadership and represent the largest Israeli campaign on Iranian soil since the Iran–Iraq War.
Geopolitical shake-up and investor reaction
The airstrikes triggered a sharp surge in oil prices—some benchmarks rose by over 7 to 9 percent, with Brent breaking \$75 a barrel—amid fears of disruption to Iranian output and possible threats to the Strait of Hormuz.
Simultaneously, safe-haven assets saw robust inflows: gold prices climbed around 1 to 1.3 percent, the US dollar strengthened by 0.4 to 0.6 percent against major currencies, and Treasuries rallied amid a retreat from risk.
Crypto markets hit hard
The cryptocurrency world reacted swiftly, painting a similarly stark picture:
* Bitcoin plunged 4 to 5 percent, falling from over \$108,000 to intraday lows around \$103,000, before recovering slightly to trade near \$104,000 to \$105,000.
* Ethereum dropped around 7 to 9 percent, sinking from highs near \$2,770 to about \$2,477.
* Broad altcoin declines triggered over \$1 billion in liquidations, with assets like Solana, XRP, Avalanche, Chainlink, and Cardano each falling 6 to 10 percent.
* The total crypto market cap shrank from approximately \$3.47 trillion to \$3.22 trillion—a wipeout of about \$250 billion in mere days.
Safe haven or risk-on asset?
This sharp decline has reignited skepticism about cryptocurrencies’ role as a "digital gold." Critics argue Bitcoin's flight from risk during geopolitical stress undermines its supposed hedging credentials. Financial commentator Peter Schiff expressed this sentiment:
"How can anyone consider Bitcoin to be a digital version of gold?"
Barron’s analysis also noted Bitcoin's 2.7 to 4 percent drop in contrast with gold's steady rise, highlighting its volatility.
Outlooks from analysts
Market analysts emphasize that this is likely a temporary, risk-driven selloff, not an enduring structural decline:
* Vikram Subburaj (Giottus) called it a "sentiment reset" with fundamentals remaining intact.
* Avinash Shekhar (Pi42) echoed that crypto remains fundamentally sound despite the panic.
* Ryan McMillin (Merkle Tree Capital) and Kelvin Koh (Spartan Capital) suggested these episodes often evolve into buying opportunities once tension subsides.
What's next?
* Geopolitical volatility: Iran has vowed retaliation, with drone and missile activity already reported. Global airspace disruptions and elevated defense alerts may persist.
* Macro market impact: Ongoing oil and gold moves, plus central bank pronouncements, may reinforce crypto weakness if risk aversion deepens.
* Crypto resilience test: If the geopolitical tensions cool, crypto may rally strongly again—but expectations need calibration. Traders should heed upcoming support zones: around \$103,000 to \$105,000 for Bitcoin and \$2,500 for Ethereum.