Crypto Traders Face Losses After Israel-Iran Conflict

In a few hours, cryptos wavered under the weight of a major geopolitical event. Following Israeli strikes in Iran, more than one billion dollars worth of positions were liquidated, wiping out the market’s recent gains. This is not just a simple episode of volatility, but a tangible sign that these assets, born from a promise of sovereignty, remain exposed to real-world shocks.

A Black Friday for the Crypto Market

On the night of Thursday, June 12 to Friday, June 13, 2025, the Israeli army launched a series of targeted strikes against Iran, specifically targeting nuclear and military facilities. This offensive had an immediate effect on financial markets, while the crypto market had already experienced massive liquidations on April 6.

Following the Israeli strikes on Iran, the crypto market experienced a large-scale shock. Less than 24 hours after the announcement of the bombings, cumulative liquidations in the market exceeded 1.16 billion dollars, according to CoinGlass data.

This financial hemorrhage happened while investors were expecting a bullish consolidation phase. Instead, a wave of forced sales swept the market, initially hitting the most exposed altcoins, which were increasingly attracting crypto investors.

Ethereum, particularly vulnerable, registered a drop of 7.8 %, falling to 2,533 dollars, while Solana collapsed by 8.4 %, reaching 145 dollars. Even cryptos considered more stable, like XRP, were not spared, losing 3.9 % to 2.13 dollars.

The details of the liquidations reflect the violence of the movement :

• At the bitcoin level : 449.95 million dollars in liquidations, mainly on long positions ;
• On Ethereum : 301.92 million dollars liquidated, also on longs ;
• 53.46 million dollars wiped out on Solana ;
• Almost all liquidations concern long positions, indicating a clear market surprise ;
• Stablecoins remained the only stable assets in the top 15 of the CoinGecko ranking, revealing a rush to safety.

This sequence illustrates how reactive the crypto market is and how sensitive it can be to exogenous shocks. Trading algorithms, cascading orders, and leverage effects amplified the initial fall into a true intraday crash.

A High-Intensity Geopolitical Shock : Targeted Strikes, Crossed Threats, and Nuclear Tensions

The Israeli army conducted a large-scale operation in the night from Thursday to Friday, targeting several strategic Iranian facilities. Thus, the Israeli government claims to have struck nuclear sites, ballistic missile factories, as well as key military positions.

The Iranian response was swift. President Masoud Pezeshkian condemned the “aggression” and declared on the platform X (formerly Twitter): “The Zionist regime will regret its action today”.

به محض وقوع حمله جنایتکارانه رژیم صهیونی تاکنون، رئیس‌جمهور و تیم دولت مدیریت صحنه را برعهده گرفته و جلسه ویژه هیات دولت هم در این زمینه برگزار شده است؛ دکتر پزشکیان بزودی با مردم صحبت خواهد کرد

به امید خدا رژیم صهیونی از اقدام امروز خود پشیمان خواهد شد.

— Masoud Pezeshkian (@drpezeshkian) June 13, 2025

He also announced a special emergency meeting to organize the response. Meanwhile, Israel declared a state of emergency, preparing for possible retaliations in the form of missiles or drone attacks.

This military escalation had an immediate impact on global political and economic forecasts. On the predictive platform Myriad, the probability of seeing a nuclear deal between Iran and the United States succeeds has fallen to 4.7%, down from much higher levels a few days earlier.

At the same time, Myriad analysts adjusted their forecasts: the probability that further long positions on bitcoin will be liquidated in the coming days now exceeds 55.8 %, compared to about 50 % before the strikes. The climate of uncertainty and the evolution of the conflict thus directly influence market expectations.

Beyond the immediate shock, can the crypto market still be considered disconnected from geopolitical tensions ? Recent events show that crypto universe volatility does not stem solely from technical or economic factors. It is also a reflection of an unstable world, where nuclear diplomacy, regional conflicts, and military decisions directly weigh on investor psychology.