Original Title: "Under the Shadow of War, Has the Crypto Market Once Again Turned into a Panicked Flock?"

Original Author: 1912212.eth, Foresight News

In the early hours of June 13, Bitcoin plunged from $108,000 to as low as $102,664, marking an unprecedented seven consecutive red candles on the 4-hour chart. Ethereum, which was trading around $2,800, dropped to as low as $2,455, also recording a rare nine consecutive red candles on the 4-hour chart. Altcoins, driven by macro market sentiment, experienced widespread sell-offs as well.

Regarding open interest data, according to Coinglass, $1.12 billion worth of positions were liquidated across the market within 24 hours, with long positions accounting for $1.04 billion of the liquidations. The largest single liquidation occurred on Binance’s BTCUSDT market, amounting to $201 million.

On June 12, Glassnode reported that open interest in Ethereum futures had just reached a historic high, surpassing $20 billion. Although ETH prices have slightly retraced from the $2,800 level, the market leverage continues to accumulate as traders increasingly use stablecoins to amplify their positions.

Additionally, the "ETH MicroStrategy" listed company SharpLink Gaming filed documents with the SEC regarding "PIPE investor stock dumping," which caused its stock price to plummet around 70% in after-hours trading. This also had a significantly negative impact on ETH.

The company submitted an S-3ASR registration statement, which permits the resale of up to 58,699,760 shares related to private investment in public equity (PIPE) financing by over 100 shareholders. The market initially interpreted the filing as a sign that PIPE investors had already sold their shares. However, the company’s chairman of the board, Joseph Lubin, clarified on the X platform that the market had "misread" the S-3 filing. According to Lubin, the filing is a standard procedure in traditional finance for pre-registering shares for potential resale post-PIPE transactions and does not indicate actual sell-offs.

The significant growth in open interest for futures indicates that this round of price increases was primarily driven not by spot buyers but by leveraged futures traders. In comparison, Bitcoin, which remains more driven by spot demand, demonstrated divergent price action from Ethereum. The recent surge in call option buying, combined with gamma hedging effects, has left ETH particularly vulnerable to gap risk. The market has become increasingly fragile and highly sensitive to shifts in momentum.

Just as the market was hoping for Ethereum to lead a strong altcoin rebound, it suddenly reversed direction and turned bearish again. What exactly caused this to happen?

Israel and Iran Clash Again in Military Conflict

In the early hours of the 13th local time, the Israeli Ministry of Defense announced that Israel had launched strikes against Iran. Israeli Defense Minister Katz stated that Israel carried out airstrikes on Iran. Katz further noted that after launching preemptive strikes against Iran, it is anticipated that Israel will soon face missile and drone attacks in retaliation. According to Xinhua News Agency, Israeli Prime Minister Netanyahu issued a statement on the 13th, saying that the Israeli military’s strikes on Iran would "last several days."

The entire nation of Israel is now under a state of emergency. CNN, citing Israeli sources, reported that Israel is preparing for significant retaliation from Iran, which is expected to be on a larger scale than Iran's previous attacks on Israel. The sources revealed that Israel intends to continue its offensive against Iran until it believes Iran's nuclear threat is neutralized, although there are doubts within Israeli security agencies about whether such a goal can realistically be achieved by Israel's actions alone. Israel has three main targets: Iran’s nuclear facilities, military assets, and key Iranian military personnel.

Meanwhile, Iranian state television recently announced unconfirmed reports suggesting that Iranian Revolutionary Guard Corps commander General Salami may have been killed in Israel’s attacks. The broadcaster added that another senior guard officer and two nuclear scientists might also have died. No additional details were provided in the report.

On the international markets, both Brent Crude and WTI oil futures surged by over 8%. Nasdaq futures extended losses to 2%, S&P 500 futures fell 1.8%, and Dow Jones futures declined by 1.6%. Spot gold briefly surged above $3,420 per ounce, gaining nearly 1% intraday.

Federal Reserve Hesitant to Cut Rates

Since lowering interest rates in December 2024, the Federal Reserve has yet to signal any inclination toward further rate cuts. U.S. President Donald Trump has been vocal about his dissatisfaction, frequently expressing on social media his desire for the Fed to reduce interest rates. "We carry a substantial amount of short-term debt. I prefer long-term, low-interest debt. If we lower rates by 1%, it translates to a 1% reduction in payments," Trump remarked.

"I suggest the Fed cut rates by 200 basis points." However, Powell has shown no signs of conceding to this demand. Market speculations about Powell being ousted have risen, yet Trump simultaneously indicated, "I will not fire Federal Reserve Chair Powell; all he needs to do is lower the rates. Our inflation data is performing well." Hedge fund titan Paul Tudor Jones has pointed out that Trump might eventually choose a "very dovish" Fed chair.

Recently, following the release of the CPI data and the U.S. Core PPI for May, traders forecasted a scenario where the Fed cuts rates twice within the year, potentially starting in September. In the current climate of tight market liquidity, even minor disruptions could easily trigger significant market downturns.

Frequent Black Swan Events

The international market has been quite turbulent recently. On June 12, a Boeing 787 aircraft operated by an Indian airline crashed while en route to the UK, marking the first fatal crash involving this model. Several media outlets reported that the death toll exceeded 240. Affected by this news, Boeing's stock price plunged by over 6% at one point.

Previously, after a heated argument between Tesla founder Elon Musk and U.S. President Donald Trump, the incident seemed to come to an end with Musk's apology. According to Reuters, President Trump praised Tesla during an event at the White House focused on California's electric vehicle regulations, stating: "I like Tesla... I discussed electric vehicles with Musk," and adding, "Musk does indeed like me."

Meanwhile, the riots in Los Angeles continue, with curfews implemented in certain areas. The Global Times reported that since last Saturday, at least 378 people have been arrested in Los Angeles. The Mayor of Los Angeles announced on the evening of June 10 local time that a curfew would be imposed from 8 PM on that day to 6 AM on June 11 in certain downtown areas. The duration of the curfew policy will be determined following further evaluation. The war of words between President Trump and California Governor Gavin Newsom continues, while protests opposing immigration enforcement actions have spread from Los Angeles to other parts of the U.S.

Market Outlook

HashKey Capital Investment Manager Rui tweeted, "Liquidity in the altcoin market has hit rock bottom. Putting aside record low trading volumes from market makers, the order books are empty, and prices naturally drift downward. Positive news fails to attract buyers, and new listings see buy orders only from bots for the first 30 seconds. Once listed, prices begin to slide. Regardless of whether it's an uptrend or a downtrend, the cycle for altcoin market movements has shortened dramatically—miss the window, and you're out."

Trader Million ERIC tweeted that after Bitcoin's oversold signal this time, it only rebounded slightly before continuing its downward trend. He noted that the next key price range to watch is near $101,000.

Original Article Link

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia