Bitcoin suffered its sharpest dip in weeks during a short frenzy of trading around midnight 13 June, after Israel struck nuclear and military sites in Iran.
The original cryptocurrency fell 6% within 30 minutes to about $103,000, recovering to about $104,700 by 02:00 UTC. The swift sell-off suggests that traders still treat Bitcoin as a risk asset, not a haven.
Overnight raid
Israel said the overnight raid – Operation Rising Lion – hit missile depots near Natanz and command sites around Tehran. Iranian media reported explosions and at least three Guard officers killed, though casualty figures are still unverified. Washington pulled non-essential embassy staff, and UN officials warned the situation could deteriorate if cooler heads don’t prevail.
Seeking refuge
While Bitcoin slid, investors rushed into classic hideouts:
- Gold jumped above $3,430 / oz.
- Ten-year U.S. Treasury yields dipped to 4.32 % as bond prices rose.
- The Swiss franc and Japanese yen both strengthened against other currencies.
These assets are known to attract inflows whenever headlines turn scary.
Meanwhile, oil spiked nearly nine percent amid the fear before easing to a five-percent gain.
Domino sell-off
Bitcoin’s plunge during the early hours was amplified by investors who had borrowed to form positions that assumed the coin would rise in value. So-called “leveraged longs” were liquidated by exchanges concerned that the coin holders better lose their collateral versus incurring further losses, setting off a domino sell-off.
The speed of the drop underlined how closely crypto trades with other risk-on assets – such as tech stocks – when nerves fray.
What next for crypto?
With cash flowing into gold and the franc—not into Bitcoin—any quick recovery will likely require calmer geopolitical headlines. The same applies to most large coins: when investors seek safety, they traditionally leave crypto on the sidelines.
Outlier coins
Nearly all major tokens fell with Bitcoin. Only a few exchange-utility coins (LEO, WBT) managed small gains, while stable coins nudged slightly above their dollar pegs as traders parked cash.
