Why Crypto Market Is Down Today June 13
On Friday, June 13, the Crypto Market witnessed a big decline. The biggest reason behind this is the growing war between Israel and Iran. As soon as the news came that Israel had launched a major military attack on Iran, the Crypto Market as well as the global market faltered badly.
The total market cap of the Crypto Market fell by 4.5% to $3.24 trillion. Bitcoin fell by about 4% to $104,142. Ethereum is trading at $2,503 with a decline of 9.36%, while Solana Price fell by about 10% to $143. XRP and BNB also saw a decline of up to 3%.Geopolitical tensions became the reason for the decline of the crypto market
According to Reuters' X Post, Israel attacked several important targets including Iran's capital Tehran. This includes uranium enrichment plants, ballistic missile production units and the headquarters of Iran's Revolutionary Guard Corps.There have been reports of the death of Iranian General Hossein Salami and the death of many civilians in this attack. Israel has named it "Operation Rising Lion" and declared a national emergency.
In this tense environment, the fall of the Crypto Market is inevitable. In such circumstances, investors associated with the crypto market also withdraw money from risky assets and turn to safe means like gold, bonds.
Understand the depth of the fall from the data
According to a report, there was 125% more liquidation in the crypto market within 24 hours, which crossed $1.2 billion. Open interest fell by 9.7% and RSI (Relative Strength Index) fell to 28, which indicates that the market is in the oversold zone.
Along with this, the Crypto Fear & Greed Index is in the "Greed" zone at 61, but a fall of 10 points in a day shows that investors are confused and are avoiding taking risks.
On the other hand, US stock futures fell by 1.5% and European markets also showed weakness. Gold rose by 0.75% to $3,428/oz and crude oil jumped nearly 10% to $74 per barrel.
What could happen next?
Given the current scenario, as a crypto market expert, I believe that if the Israel-Iran tension escalates further, the Crypto Market may fall further. The risk appetite of investors has weakened and they may now shift towards safe-haven assets.
However, it is also important that this decline has come only due to fear and not due to a change in the fundamentals of the crypto industry. As soon as the situation becomes normal again, the Crypto Market can recover again, especially the trend will be seen first towards Bitcoin and Stablecoins.
In this situation, instead of panicking, new investors should keep an eye on the market and wait till the market direction becomes clear before taking any decision.