Crypto Daybook Americas: Bitcoin Weathers Market Rout as Israel Hits Iran
Global markets experienced significant volatility following Israeli airstrikes on Iranian nuclear and missile sites. The cryptocurrency market, mirroring broader risk-off sentiment, saw substantial losses. The CoinDesk 20 Index (CD20) fell 6.1% in 24 hours, with Bitcoin (BTC) dropping 2.9%. Gold, a traditional safe haven asset, rose 1.3%. The attack, targeting Iran’s nuclear program and military leaders, prompted Iran to launch retaliatory drone strikes. The U.S. denied involvement.
This geopolitical escalation impacted global markets. Japan’s Nikkei dropped 0.9%, U.S. index futures fell 1.2%, and the Euro Stoxx 50 lost 1.35%. However, crude oil prices surged, with U.S. crude up over 6% and Brent crude spiking 14% at one point. Gold reached $3,445 per ounce, nearing its all-time high.
Cryptocurrency’s decline reversed earlier gains fueled by speculation regarding ETF approvals. Solana (SOL), particularly, had rallied on reports of the SEC requesting updated S-1 filings from ETF issuers. SOL, however, fell nearly 9.5% in 24 hours. Despite this setback, optimism remains regarding ETF approval, with analysts assigning a 90% probability of approval by year-end. Spot crypto ETF inflows remain strong, with BTC funds receiving $939 million and ETH $811 million month-to-date.
Market participants are closely monitoring the Middle East situation. Polymarket traders assign a 91% probability of Iranian retaliation against Israel this month, and the likelihood of U.S. military intervention rose from 4% to 28%.
Other notable market events include a 3-for-1 share split for the ARKB ETF, the launch of USD-settled ether and solana futures contracts on Brazil’s B3 exchange, and upcoming votes on the GENIUS Act of 2025 in the U.S. Senate. Several tokens experienced scheduled unlocks, impacting circulating supply. Coinbase will delist several tokens. Numerous conferences are scheduled throughout June and July. Derivatives markets saw a significant reduction in open interest, indicating a shift towards risk aversion. Liquidations reached $1.16 billion, primarily affecting long positions.
