Middle East Tension Crashes Crypto Markets

13th June 2025 • 11 mins read

This Week’s Recap

  • Bitcoin Drops 4% to $103,556 Amid Israeli Airstrikes on Iran: News of Israeli airstrikes targeting Iran’s nuclear and military infrastructure triggered a sharp risk-off move, driving Bitcoin down roughly 4% to about $103,556 as oil prices surged and investors flocked to safer asset
  • $110,000 amid altcoin rally & PYUSD tops $1 billion: Bitcoin climbed past $110,00 as a broad-based altcoin rally gained momentum, reflecting increased trader risk appetite across major protocols. Simultaneously, PayPal’s PYUSD stablecoin surpassed $1 billion in circulating market cap, underscoring the growing demand for regulated digital dollars as a settlement asset. The convergence of speculative token gains and institutional-grade stablecoin adoption highlights maturing market dynamics where both risk and safe-haven instruments thrive. 
  • Bitcoin breaks above $108 000 & $110,000; MicroStrategy holds 582 000 BTC; BlackRock ETF hits $70 billion: Institutional demand propelled Bitcoin above key psychological thresholds of $108 000 and $110,000, driven in part by corporate treasuries accumulating large positions—MicroStrategy now controls 582 000 BTC. Despite these highs, spot prices remain vulnerable around $105 000, suggesting potential profit-taking pressure. At the same time, BlackRock’s flagship spot Bitcoin ETF has amassed $70 billion in assets under management, marking a major milestone in institutional adoption of digital gold. 
  • Crypto markets climb as U.S. inflation cools; BNB & Litecoin test key levels: After U.S. consumer price data showed a deceleration in inflation, risk-on sentiment flooded into crypto markets. Binance Coin edged toward critical resistance near $674, bolstered by optimism around upcoming network upgrades. Litecoin found buying support around $87–$90 and rebounded to $93.56, indicating traders are seizing dips amid renewed liquidity flows from traditional markets.
  • Ethereum spot ETFs attract $240 million, outpacing Bitcoin ETFs: On June 11, spot Ethereum exchange-traded funds recorded $240 million in net inflows, surpassing the $165 million that went into Bitcoin-centric funds over the same window. This divergence highlights institutional appetite for diversified crypto exposure, particularly to Ethereum’s smart-contract platform and staking yields. The trend underscores a maturing ETF ecosystem where asset allocators look beyond Bitcoin for yield and decentralized finance participation. 
  • U.S. stablecoin market could surpass $2 trillion by 2028: In a recent Treasury Department projection, officials anticipate the stablecoin sector—currently at $247 billion—to grow to over $2 trillion within three years under a clear regulatory framework. The forecast reflects expectations that tokenized dollars will become integral to cross-border payments, corporate treasury operations, and decentralized finance. Policymakers argue that formal oversight and reserve requirements will drive institutional participation and mass adoption.
  • Tokenized real-world assets soar 260 percent to $23 billion in H1 2025: Industry data reveal that tokenized real-world assets—covering tokenized credit, debt, and commodities—expanded from $8.6 billion at year-end 2024 to over $23 billion by mid-2025. This rapid growth highlights blockchain’s transformative impact on lending markets, private credit, and institutional treasury operations.
  • XRP Ledger to launch EVM-compatible sidechain in Q2: Building on recent legal victories, Ripple’s development team confirmed that the XRP Ledger will deploy its Hooks sidechain—offering full Ethereum Virtual Machine compatibility—in the second quarter. The upgrade aims to enable seamless integration with Ethereum-based decentralized applications and expand the XRPL DeFi ecosystem. XRP’s price has consolidated around $2.28 following a 30 percent pullback since January, setting the stage for potential upside once the sidechain goes live. 
  • GameStop plans $1.75 billion raise, potentially for Bitcoin purchases: GameStop filed to raise $1.75 billion through convertible notes or equity issuance, with market observers speculating that part of the proceeds may fund Bitcoin acquisitions. The proposal reflects a growing trend of legacy corporations diversifying balance sheets with digital assets for inflation hedging. Investors will be watching how GameStop allocates new capital amid its broader shift toward digital and e-commerce initiatives.
  • Polygon appoints Sandeep Nailwal as CEO amid strategic shift: Polygon Labs elevated co-founder Sandeep Nailwal to CEO, signaling a renewed focus on scaling solutions like AggLayer and proof-of-stake optimizations. His leadership is expected to accelerate deployments of high-throughput, low-cost transactions and expand cross-chain interoperability. The executive change comes alongside forward momentum in U.S. stablecoin legislation, which could offer clearer compliance parameters for layer-two networks.
  • U.S. lawmakers advance stablecoin legislation with bipartisan support: The Senate passed a 68–30 procedural vote on the GENIUS Act, edging closer to the first comprehensive federal framework for stablecoins. Under the bill, issuers would require banking charters and maintain fully audited reserves subject to federal oversight. Proponents contend that this clarity will protect consumers, curb illicit finance, and foster innovation in digital payments.
  • Ukrainian parliament proposes state-backed crypto reserve fund: Legislators in Ukraine introduced bill 13356, which would authorize the central bank to include cryptocurrencies such as Bitcoin and Ether as part of national reserves. The initiative aims to diversify foreign-exchange holdings, bolster macroprudential resilience, and recognize digital assets as strategic economic tools. If enacted, Ukraine would join a small cadre of nations formally integrating crypto into sovereign reserves.
  • 60 percent of Fortune 500 firms adopt blockchain for enterprise use: A survey reported by Yahoo Finance found that 60 percent of Fortune 500 companies are actively running or piloting blockchain projects across supply chain management, trade finance, and digital identity. Use cases span traceability for food safety to tokenized loyalty programs. The level of corporate engagement signals blockchain’s evolution from experimental proofs of concept to mission-critical infrastructure at scale.
  • SEC and CFTC coordinate crypto oversight; Solana ETF comment period kicks off: U.S. financial regulators are aligning on definitions and treatment of crypto assets under securities and commodities law, with the SEC drafting updated guidelines and the CFTC preparing to police derivatives markets. Concurrently, the SEC opened a 21-day comment window for Grayscale’s proposed Solana ETF, allowing stakeholders to submit feedback before a final decision.
  • Circle’s IPO triples on NYSE debut; Saylor reiterates $1 million Bitcoin target: Circle Internet Group’s shares surged over 200 percent in their NYSE debut, reflecting strong investor interest in crypto infrastructure providers. At the same time, Michael Saylor reaffirmed his bullish $1 million Bitcoin forecast, citing persistent supply constraints and growing institutional demand as core drivers.
  • Bitcoin long-term holders now control record 14.46 million BTC: On-chain data indicate that addresses holding coins for over a year have increased their collective stash to 14.46 million BTC, a new all-time high. This accumulation trend suggests unwavering conviction in Bitcoin’s multi-year bull cycle and removes significant supply from exchange order books. Price momentum remains strong as BTC hovers near $112 000.
  • TRON stablecoin supply nears $80 billion; Sui surges amid U.S.–China trade talks: TRON’s combined stablecoin supply—USDT, USDC, TUSD—reached $77.7 billion, closing in on the $80 billion milestone as decentralized finance activity intensifies. Concurrently, Sui tokens rallied 4.7 percent following constructive signals from U.S.-China trade discussions and the network’s recovery from a $223 million exploit earlier this year.
  • MicroStrategy upsizes $1 billion equity raise for additional Bitcoin buys: Strategy (formerly MicroStrategy) increased its planned equity offering to $1 billion to finance further BTC acquisitions. The enlarged capital raise reflects robust investor support for corporate treasury strategies using Bitcoin as a hedge. The move underscores MicroStrategy’s pioneering role among public companies accumulating digital assets on their balance sheets. 

Bitcoin Market Analysis

Over the past week Bitcoin’s price has traded between around $110,000 at the top and $103,000 at the bottom before closing just above $103,000 on Friday. That large swing shows sensitivity to short-term drivers. When Bitcoin broke above the prior high near $108,000 on Monday, new buyers stepped in, but profit-taking soon dragged it back into the low $100,000 area after resistance held. Traders now have two clear levels to watch. A weekly close above $112,000 would confirm strength, and a drop below $100,000 could signal a deeper pullback or a shift into cash.

Source: https://altfins.com/technical-analysis

Technically Bitcoin remains firmly in an uptrend because price has stayed above its 200-day simple moving average throughout the week. The 14-day relative strength index has moved between 35 and 65, which means the market is neither overbought nor deeply oversold. That neutral momentum leaves room for either higher highs or lower lows without extreme readings. Volume data shows more activity on the upside break through $108 000 than on the pullback, which points to buyer conviction at higher prices. The old support near $108 000 has become resistance and the $100,000 to $103 000 zone now offers a lower-risk entry point.

Over the past week, total Bitcoin spot ETF net inflows amounted to $981.96 million, lifting cumulative assets under management to $131.85 billion as of June 11, when Bitcoin traded near $108,742. These allocations represent one of the largest weekly inflows since spot ETF launches, underscoring strong institutional conviction in Bitcoin’s portfolio role amid evolving macroeconomic conditions.

Source: https://sosovalue.com/dashboard/total-crypto-spot-etf-fund-flow

Several factors drove these allocations. Improved regulatory clarity around custody and audit requirements encouraged major asset managers to scale into Bitcoin via ETF wrappers instead of direct spot markets. A moderate pullback in U.S. Treasury yields and signs of easing inflation fed a risk-on tilt that spilled into digital assets. At the same time, a broad-based altcoin rally lifted many DeFi and Layer-1 tokens by double digits, signaling renewed speculative interest among sophisticated traders. On the stablecoin front, PayPal’s PYUSD crossed $1 billion in circulating supply, showing growing demand for fully collateralized on-chain dollars as a liquidity anchor and trading rail.

Institutional balance sheets continued to accumulate Bitcoin. MicroStrategy added to its holdings to bring its treasury to 582,000 BTC, while BlackRock’s spot Bitcoin ETF topped $70 billion in assets under management. These parallel flows into high-volatility tokens, regulated stablecoins, and spot Bitcoin ETFs show a maturing market where allocators balance aggressive growth bets with defensive liquidity positions.

Mid-week tensions in the Middle East led to a sharp risk-off rotation. Reports of possible Israeli-Iranian clashes and U.S. Embassy evacuation alerts in Iraq pushed traders to lock in gains and drove Bitcoin down toward $103 000. That drop shows how global events can quickly sway crypto markets and why traders need to factor in macro risks when planning their next moves. If Bitcoin can hold the $100,000 support area this uptrend is still intact, but a break below it could open the door to a deeper pullback or rotation into other asset classes.

Ethereum Market Analysis  

Over the past seven days Ethereum traded between $2,480 on the downside and $2,815 on the upside. It closed just above $2,480 on June 13 after rallying past $2,680 early in the week and then giving back gains near $2,800. That $2,480 to $2,815 range now defines a clear trading corridor. A weekly close above $2,815 would signal renewed strength and open the path toward $3,000, while a drop below $2,480 could invite deeper retracements.

Source: https://altfins.com/technical-analysis

From a technical and trade setup perspective Ethereum has just broken above the $2,760 resistance zone after three prior rejections and reclaimed its 200-day simple moving average. This breakout signals a bullish trend reversal and shifts the short-term trend to strong up, the medium-term trend remains up, and the long-term trend is neutral. The 14-day relative strength index sat between 30 and 70, showing neither overbought nor oversold conditions. The pattern here is a classic resistance breakout, where buyers have absorbed supply at $2,760 and turned it into new support. Traders can set an entry alert around $2,760 with a stop loss at $2,620 and target the next resistance at $3,000. On the fundamental side, potential approval of spot Ethereum ETFs with built-in staking in 2025 could serve as a catalyst. For strategy details review Lesson 7 on breakouts and Lesson 9 on risk management. Nearest support levels are $2,400 and $2,100 and nearest resistance levels are $2,760 and $3,000.

Early in the week Ethereum drew fresh capital from multiple sources. A broad altcoin rally lifted many DeFi and layer-1 tokens by more than 10 percent, signaling renewed speculative appetite among sophisticated traders. PayPal’s PYUSD stablecoin crossed $1 billion in circulation, adding liquidity to ETH trading pairs. On June 11 spot Ethereum ETFs pulled in $240 million in net inflows, outpacing the $165 million that went into Bitcoin-focused funds over the same window. This divergence highlights institutional appetite for diversified crypto exposure, particularly to Ethereum’s smart-contract platform and staking yields, and shows growing conviction in ETH as a cornerstone of decentralized finance.

Crypto Adoption Growing Further

Over the past week, the stablecoin sector continued to mature. Market capitalization hit a record $251 billion as trading volumes and payment use cases rose. In late May a U.S. Treasury Department presentation to the Treasury Borrowing Advisory Committee projected stablecoins could grow from roughly $251 billion today to over $2 trillion by the end of 2028 under a clear regulatory framework. The GENIUS Act cleared a key procedural vote in the U.S. Senate, moving the industry closer to a licensing and reserve regime. Circle’s IPO on the NYSE showed growing institutional confidence in compliant stablecoin issuance. Klaas Knot, outgoing chair of the Financial Stability Board, warned that stablecoins have become a market segment we must monitor closely. These moves show that regulated digital dollars are becoming vital for cross-border payments, corporate treasuries and decentralized finance and are paving the way for broader crypto adoption.

Real-world asset tokenization surged 260 percent in the first half of 2025, jumping from $8.6 billion at year-end 2024 to over $23 billion by mid-year, according to Binance Research. Tokenized private credit led this boom with a 58 percent share, followed by tokenized U.S. Treasury debt at 34 percent. By minting financial and tangible assets on an immutable blockchain ledger, RWA tokenization lowers entry barriers, enables fractional ownership of illiquid instruments, and creates 24/7 trading and settlement opportunities

Source: Binance research 

Despite lacking a dedicated regulatory framework, the RWA sector has benefited from broader crypto clarity. On May 29 the SEC issued new guidance on cryptocurrency staking, a move hailed as a step toward more sensible regulation, while the GENIUS Act’s pending Senate vote promises clearer rules for tokenized asset collateralization. As these guardrails take shape, major industry players are poised to expand participation, demonstrating how on-chain real-world assets are reshaping traditional finance and driving deeper institutional crypto adoption

Mark Your Calendars

Economic Data Releases:

  • June 18, 2025 (Wednesday): FOMC interest-rate decision
  • June 18, 2025 (Wednesday): Fed Chair Powell press conference

Token Unlock

  • June 15, 2025: STRK (STRK) unlocks $14.94 M (3.79 % of market cap)
  • June 16, 2025: ARB (ARB) unlocks $30.83 M (1.91 % of market cap)
  • June 18, 2025: FTN (FTN) unlocks $89.00 M (4.66 % of market cap)
  • June 19, 2025: ZKJ (ZKJ) unlocks $31.21 M (5.04 % of market cap)