In the wake of Israeli airstrikes on Iran in mid-June 2025, the crypto market witnessed a sharp sell-off due to a buildup of 'risk-off' sentiment, as Bitcoin fell below $103,000, negatively impacting other major currencies.
With market sentiment declining, the total market capitalization dropped from around $3.4–3.5 trillion to about $3.2 trillion, and traders began turning to gold and the dollar as safe havens. Some analysts (like Beacham Cointelegraph) noted a technical recovery after reaching support levels like the daily moving average, but the market remained volatile.
In the short term, factors of uncertainty—in the form of threats of cyberattacks, rising oil prices, and escalation of conflict—have increased volatility and temporary decline. However, some specialists believe that the intensification of the conflict may create opportunities for Bitcoin as a hedge tool, especially in high inflation environments or financial sanctions.
Overall, the temporary geopolitical war has proven to be a hindrance to crypto prices, but the persistence of institutional momentum and global liquidity may provide a basis for recovery in the medium term, provided the geopolitical situation stabilizes.
