The escalation of the conflict between Israel and Iran, which began with Israeli airstrikes on Iranian facilities on June 12, 2025, caused a sharp decline in the cryptocurrency market. According to analysts from Finbold, the cryptocurrency market capitalization shrank by 12% in one day, reaching $2.1 trillion. Bitcoin, the main market indicator, fell by 8%, trading at $104,000, while Ethereum lost 10%, dropping to $2,400.
The main reason for the collapse was a mass outflow of capital from risky assets due to geopolitical instability. Investors, fearing an escalation of the conflict, shifted their funds into safe assets such as gold and government bonds. Furthermore, panic was exacerbated by reports of potential cyberattacks on financial infrastructure, which further undermined confidence in decentralized assets.
On the X platform, users are actively discussing the decline, pointing to the volatility of the crypto market in times of crisis. Some analysts predict further declines if the conflict is not resolved. Meanwhile, some investors see the drop as an opportunity to buy assets at lower prices.
Experts are calling for caution, as instability in the Middle East may have long-term consequences for global markets, including the cryptocurrency market. The further development of events will determine whether the market can recover in the near term.
