Key points:
- The total crypto market cap dropped 4% to $3.24 trillion on June 13 following Israel’s attack on Iran.
- Over $1.15 billion in crypto futures were liquidated, including $1 billion in long positions.
- The bull flag pattern in the total crypto market cap indicates the uptrend is still intact.
The total market value of all cryptocurrencies dropped by over 4% in the past 24 hours, falling to $3.24 trillion on June 13, following reports of Israel’s strike on Iran.
Let’s look closer at the factors driving the crypto market down today.
Cryptocurrency prices decline following Israel’s strike on Iran
Geopolitical tensions, especially in the Middle East, have shaken global financial markets, including the cryptocurrency sector. Israel has launched a military operation within Iranian airspace, escalating fears of a broader conflict.
Israeli Prime Minister Benjamin Netanyahu stated that the country has targeted Iran’s nuclear facilities and other strategic locations, vowing to continue the strikes until the perceived threat is eliminated.
Investor concerns over possible retaliation from Iran and its allies have driven a pullback from risk-on assets, triggering a sharp drop in cryptocurrency prices.
Bitcoin fell as much as 5.6%, hitting a low of $102,700 on Bitstamp before rebounding to over $104,000. Other digital assets saw steeper losses—Ether plunged to $2,400, down 9.4% in the past 24 hours, while XRP and Solana also suffered, declining 5.8% and 9.6%, respectively.
US stock index futures also dropped across the board on the news.
Meanwhile, bond prices, gold, and oil climbed as investors sought refuge in traditional safe-haven assets.
“Oil prices have surged above $72 per barrel for the first time in over four months,” noted capital markets commentator The Kobeissi Letter in a June 13 post on X, adding:
“The market appears to be pricing in a new war.”
More than $1.1 billion in crypto positions liquidated
Today’s cryptocurrency sell-off has been accompanied by a surge in futures market liquidations, totaling $1.15 billion over the past 24 hours.
Notably, long positions accounted for $1 billion of the liquidations — the largest single-day wipeout since February 25 — while short positions saw a comparatively modest $93 million in liquidations.
Bitcoin and Ether bore the brunt of the liquidations, with $448.1 million and $288.4 million wiped out, respectively. Solana followed with $52.1 million in liquidations, while Dogecoin and XRP saw $27.6 million and $23 million cleared from the market.
Such large-scale liquidations amplify price declines and fuel fear among investors, triggering additional selling pressure across the market.
A technical correction?
Today’s drop in the crypto market comes on the heels of a strong rally that saw TOTAL—the combined market capitalization of all cryptocurrencies—surge by over 51%, reaching $3.5 trillion between March and mid-May.
Since then, the market has retreated slightly to its current valuation of $3.24 trillion. This pullback has formed a bull flag pattern on the weekly chart, as illustrated below.
Earlier this week, the market briefly broke above the bull flag’s upper trendline at $2.35 trillion before falling back within the pattern on June 13. A confirmed breakout above this level could pave the way for a 58% rally in total crypto market capitalization, potentially reaching $5.05 trillion.
The Relative Strength Index (RSI) remains in positive territory at 57, indicating that market momentum still leans toward the upside.
However, on the downside, a weekly close below the flag’s lower boundary at $3.1 trillion could spark a further sell-off—first targeting the 50-day Simple Moving Average (SMA) at $2.75 trillion, and potentially extending to the base of the flag around $2.31 trillion.
