The main causes of financial losses in cryptocurrency markets and their relation to the Iranian-Israeli conflict
In June 2025, cryptocurrency markets witnessed a wave of consecutive losses coinciding with the escalation of the conflict between Iran and Israel. Military developments and cyberattacks affected investor confidence, prompting them to abandon digital assets and resort to traditional safe havens. This article presents the main factors causing these losses and their direct relation to the course of the Iranian war, highlighting the economic and geopolitical impacts and future projections.
---
1. Direct price losses
Decline in Bitcoin and Ethereum prices
On June 13, 2025, following Israeli airstrikes targeting Iranian nuclear and military facilities, Bitcoin recorded a decline of about 1–3%, while Ethereum dropped by more than 5% within a few hours.
The market continued its bleeding, as the value of Bitcoin dropped to levels close to $100,000 by June 21, recording a daily decline exceeding 2%, while Ethereum lost more than 6% of its value within 24 hours.
Market loss volume
Data from the Binance platform showed that lost liquidity exceeded $1 billion during the escalation days, with significant withdrawals from margin positions.
Global trading platforms recorded liquidations of more than 250,000 distressed trades, further exacerbating the collective downturn.
---
2. Cyber attacks and targeting infrastructure
Hacking of Iran's digital platforms
On June 18, 2025, Iran's largest cryptocurrency exchange 'Nobitex' was subjected to a cyber attack during which about $90–100 million worth of crypto assets were drained, after being transferred to irretrievable wallets, raising deep concerns among investors about the security of their digital funds in the region.
The attack was attributed to the group 'Predatory Sparrow', potentially linked to Israel, which aimed through this act to send a purely political message against the Iranian regime.
Internet outage and its impact
The Iranian government responded by imposing a near-total internet shutdown as part of measures to counter the attack, leading to a halt in trading operations and increased liquidity risks, which heightened psychological tension among local and international investors alike.
---
3. Global economic factors
Concerns about rising oil prices
Markets fear that a potential closure of the Strait of Hormuz could lead to a global rise in oil prices; about 20% of crude oil passes through the strait, and Brent crude has seen a rise of about 5.5% to $75 per barrel after the Israeli strikes on the Iranian field south of Pars.
Rising energy prices lead to inflationary pressures, prompting central banks to tighten monetary policy, adversely affecting high-risk assets including cryptocurrencies.
Shifts in capital flows
As the conflict escalated, major institutions reallocated part of their portfolios from digital assets to gold and government bonds as safe havens, which led to a drop in demand and an increase in supply in the crypto market.
---
4. Geopolitical dimensions
The implications of the war on investor confidence
The decline in confidence is a key factor; sharp fluctuations in the cryptocurrency market are attributed to the belief that the conflict may extend to include other countries, potentially affecting global supply chains and increasing political and financial risks.
Despite some opinions suggesting that geopolitical conflicts enhance demand for decentralized assets in the long term due to inflation potential, the short term appears to lean towards excessive selling out of fear of immediate risks.
---
5. Future projections
1. Relative stability after the calm
If the conflict remains contained without involving other regional parties, the market may regain some gains within weeks, as happened after previous conflicts, such as the 2023 attacks in Gaza, where Bitcoin quickly recovered from the initial decline.
2. Long-term upward trend
Some analysts bet on the rise of cryptocurrencies as a refuge from future inflation due to increased military spending, but this bet requires better cybersecurity and relatively political stability.
3. Ongoing risks
Cyber attacks and internet restrictions remain effective tools for undermining trust in blockchain infrastructures, necessitating tighter international security measures and diversifying trading platforms to avoid reliance on a single infrastructure.
---
Summary
The decline in cryptocurrency prices in June 2025 is closely linked to the escalation of the war between Iran and Israel, as military strikes, cyberattacks, internet outages, and market concerns over oil and inflation fueled a state of panic selling. Despite the short-term pessimism of investors, the strategic outlook remains relatively optimistic in the long term, provided there is a degree of geopolitical stability and enhanced cybersecurity in the crypto sector.
#CryptoStocks #استثمار #InvestSmart #IranIsraelConflict #عملات_رقمية