Israel-Iran Tensions Shake Global Markets - Bitcoin and Ethereum React Sharply

Bitcoin Drops This Much After Israel-Iran Tensions - Guess Where Ethereum Stands Now

Bitcoin, the world’s most popular cryptocurrency, fell by over 4% to around $104,000 on Friday, June 13, 2025. This happened after reports on June 12,  said that Israel had carried out airstrikes on Iran. The news raised tensions in the Middle East and caused investors to become more cautious, leading to a sell-off in risky assets like crypto.

Ethereum, the second-largest cryptocurrency, dropped even more (about 9.6%) to $2,493.

Other major cryptocurrencies also took a hit. Solana dropped 9.62%, XRP fell 5.42%, and BNB slid by 2.65%.

Just a few days ago, Bitcoin had reached a new record high by crossing the $111,000 mark.

According to the CoinSwitch Markets Desk, the overall crypto market lost more than 5% in value. The total market cap is now down to about $3.35 trillion.

The rising tensions also pushed oil prices up by more than 5%. This has sparked new worries about inflation. If oil prices stay high, the U.S. Federal Reserve might delay cutting interest rates, which could hurt investor interest in assets like cryptocurrency.

It was not just crypto, but stock markets and currency markets also fell today..

In other news, former President Donald Trump’s media company said it plans to raise $2.5 billion to buy bitcoin. It joins a growing list of companies adding bitcoin to their balance sheets. These companies are doing this for different reasons,  some use bitcoin as a hedge against inflation, while others are making it a major part of their business strategy by using loans and stock sales to buy more.

Why Does Bitcoin’s Price Move So Much?

Bitcoin’s price often swings up and down a lot. That’s mainly because the crypto market is still smaller and less stable than traditional financial markets. When large trades happen, they can cause big price shifts.

Also, Bitcoin’s value is strongly influenced by news, public opinion, and government regulations. Media stories and comments from influential people can quickly change how people feel about it, causing short-term price moves.

Another reason is Bitcoin’s limited supply. Only 21 million bitcoins will ever exist. That scarcity can drive big price changes when demand rises or falls. On top of that, a small number of people, often called “whales” -- own large amounts of Bitcoin. When they make big moves, it can shake up the market even more.

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