Highlights
The crypto price is highly affected by geopolitical tension and economic events. This month, the US-Israel-Iran war impacted the digital asset significantly, as its escalation and de-escalation impacted investors’ trading sentiments and activities. Notably, today marks a drift from its impact as the crypto market witnesses gains. Will it explode next? Let’s discuss that.
June 13 marks the beginning of the escalation of the Middle East tension and the crypto price crash. That day, Israel launched the ‘Operation Rising Lion’ and air striked the Iranian nuclear facilities. Iran began a counterattack and even threatened to close the Strait of Hormuz, igniting fears of an oil-market shock.
With that, the crypto market crashed, losing more than a billion in liquidity in one day alone. The continuity of the Israel-Iran war, and especially the joining of the US, escalated the digital asset’s crash. On June 22, the US airstrike on Iran’s nuclear site, and Iran responded with a missile strike on Al-Udeid Air Base in Qatar.
The bull case of this weekend’s events:
While the Israel-Iran war has undeniably escalated with US involvement, it’s not all bad news.
In fact, there may be a situation where this weekend’s events lead to a faster conclusion of this conflict.
This situation would be one where… https://t.co/qnzbrBB7zE
— The Kobeissi Letter (@KobeissiLetter) June 22, 2025
The cease-fire deal followed these events, and the cryptocurrency market flourished. Bitcoin price regained the rally to $107k, Ethereum price shot to $2.5k, and Solana hit $145. The same is true for the rest of the market.
The crypto price is on the rise today despite the US-Israel war conflict. The host of the House of Crypto alleged that crypto booms after major fear events. In his 18-minute YouTube video, he claims that historical data shows multiple instances of Bitcoin and altcoins’ strong rebound after sharp sell-offs.
The events include the FTX liquidation fears and geopolitical tension, and each time, the crypto prices exploded weeks or months after the crash. His analysis suggests that the panic selling offers the bottom of the market, which investors take as a buying opportunity.
Notably, the whale activity has been relatively high for digital assets. Bitcoin and Ethereum ETF inflows are at their peak as buyers actively put money into them. Besides many more institutions, including Sequans Communications start Bitcoin Treasury.
Others like MicroStrategy and Metaplent continue Bitcoin buying. Additionally, the regulatory development is also coming, as the Genius Act reaches the House. So, not only the US-Israel-Iran war, but also other factors are contributing to the surge today. The same can favor a surge in the future as well, opening the possibility of a crypto price rally.
Individually, Solana, Ethereum, and SEI are showing strong rebounds past the dip. Bitcoin is only 5% away from the ATH. Besides, the exchange reserve dropped to a 10-year low, showcasing investors’ strong confidence in further rallies and desire to hold.
The continuity of the bullish momentum could create bull market-like conditions. However, the geopolitical and macroeconomic barriers are still persistent. Upcoming updates could shift the trajectory, so further continuous analysis is mandatory.
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