In late June 2025, the global financial market was suddenly shaken— the United States launched surprise strikes on three nuclear facilities in Iran in the early hours, leading to a full escalation of the Middle East situation. Upon the news, the market immediately reacted:
Bitcoin (\u003cc-3/\u003e) price plummets instantly, breaking below the 100,000 USD integer level, causing panic selling; Ethereum (\u003cc-5/\u003e) also falls back to around 2100 USD low, but immediately shows clear signs of main capital picking up at low levels.
This unexpected event instead became a clear catalyst for major institutional funds to shift positions—from the high-stagnating Bitcoin to Ethereum, which is still in the undervalued zone.
✅ Bitcoin falls below 100,000, institutions take profits and exit
Although Bitcoin has performed strongly in the past two months, it has never effectively broken through the 110,000 USD range, showing signs of loosening after multiple resistances. This geopolitical conflict has triggered a wave of selling, further accelerating the pace of profit-taking.
On-chain data shows that large addresses and some ETF institutions have begun to gradually withdraw positions from BTC, instead deploying funds to Ethereum and other highly elastic assets, reflecting that institutions are adjusting their risk structures, seeking new upward momentum.
✅ ETH falls to key support, becoming the focus of capital absorption
Although Ethereum also short-term retraced to 2100 USD with market sentiment, this price level is currently in a dual support zone of technical and psychological factors. The market expects the listing process of the ETH spot ETF to enter the countdown phase; the activity level on Layer 2 and the DeFi ecosystem continues to heat up; the current price relative to the historical high of 4800 USD offers significant rebound potential.
Therefore, some major players are instead taking advantage of the dip to increase positions, viewing this sharp decline as a good opportunity to enter mid-term, gradually shifting funds from BTC to ETH.
✅ Rotation wave emerges: Bitcoin → Ethereum
This geopolitical surprise has unexpectedly accelerated the rotation rhythm among digital assets. Bitcoin, as a representative of safe-haven assets, has already reflected positive news in advance, while Ethereum at this time possesses: application layer expansion (smart contracts/DeFi/NFT), potential ETF policy benefits, and combined support from technical levels and value undervaluation.
Combining these fundamentals with current capital flow trends, ETH is gradually becoming the main character of the mid-term upward wave asset.
