The geopolitical crisis is redistributing capital flows
Tensions in the Middle East have once again shifted the balance in global markets. Against the backdrop of escalating conflict between Israel and Iran, investors are massively leaving risky assets, switching to traditional protective instruments.
Bitcoin has sharply declined, while gold continues to strengthen, reaching multi-year highs.
The cryptocurrency market has collapsed — bitcoin $BTC is down 3%, Ethereum $ETH is down 10%
Another wave of Israeli airstrikes on Iranian nuclear facilities has triggered a wave of liquidations in the crypto market.
In a day (as of June 13, 2025), bitcoin fell by 3.3%, dropping to $104,830. Ethereum dropped even more — by over 10%, falling from $2700 to $2500.
The total volume of liquidations over the past 24 hours exceeded $1 billion. Long positions were particularly hard hit — they were forcibly closed for more than $1.16 billion.
Gold is strengthening as a classic 'safe haven'
In contrast to cryptocurrencies, gold is demonstrating a rally. At the time of publication, an ounce was trading at $3422. Analysts are already identifying the nearest key resistance zones: $3420, $3402, $3380. A breakthrough above $3440 will open the way to the range of $3468–$3493.
Stock market analyst Mary notes:
"The worsening geopolitical situation has triggered a spike in gold prices. If tensions increase, the asset will continue to rise."
Escalation of the conflict is a factor of high uncertainty
Gold is reaching new highs, while bitcoin is falling — markets are seeking refuge amid the Israel-Iran conflict
Iran's response followed almost immediately. The country launched about 100 drones towards Israel and declared a state of increased combat readiness.
The additional tension is created by the international backdrop. Other players are getting involved in the situation:
North Korea expressed support for Iran and criticized Israel's actions. President Kim Jong-un described the situation as a matter of freedom.
China and Russia, along with Iran in the SCO organization, also condemned the Israeli strikes, accusing Tel Aviv of violating international law.
The U.S. officially continues diplomatic consultations, but according to CNN reports, Donald Trump stated:
"I want deals with Iran. We are almost there. But as long as there are negotiations, I don't want Israel to interfere. It could ruin everything... although it might help."
At the same time, many sources note that the White House is still leaning towards supporting Israel.
Reassessment of the role of bitcoin as a protective asset
The situation again calls into question the status of bitcoin as digital gold. Co-founder of RedStone Marcin Kazmerczak noted in an interview with BeInCrypto:
"The correlation of bitcoin with stocks ranges from -0.2 to 0.4. It does not demonstrate a stable inverse dependence necessary for reliable portfolio protection."
According to him, bitcoin can diversify a portfolio, but it remains an unstable instrument for crisis insurance.
What's next?
The market has clearly divided: gold is reaching new highs, while bitcoin and altcoins are under pressure. As long as the threat of escalation remains, traditional assets are benefiting again from the flight to safety.
The key trigger in the coming days remains the further development of the conflict. Any escalation of hostilities will support demand for gold, while simultaneously increasing pressure on the markets.
