On Friday, June 13, the entire cryptocurrency market experienced a record crash. This decrease happened just as growing tensions between Israel and Iran fueled a flight to safety among investors. Israel mobilized pursuant to the state of emergency declared and militarily occupied Iran. This ambitious move rattled global markets, crashing the crypto market almost in half and spiking crude oil prices. The combined crypto market cap has collapsed by around 7% over the past 24 hours, dipping below $3.3 trillion.

The market downturn came on the heels of an early morning attack by Israel on Iranian nuclear facilities, raising immediate fears over the greater stability of the region. Today, Israeli Prime Minister Benjamin Netanyahu claimed that because of these strikes they have kicked off “Operation Rising Lion.” This campaign intends to make Iran’s nuclear progress moot. In retaliation, Iran promised a “crushing retaliation” for the Israeli attacks. This terrifying Iranian state media counterattack, depicting the death of General Hossein Salami and dozens of civilian children, sent incendiary shockwaves through the burgeoning crisis.

The quickly growing conflict eventually caused an exasperated Israel to call a nationwide state of emergency. They closed down their largest airport and strengthened air defenses to brace for possible retaliatory strikes. These moves increased worries of a new, wider regional war, leading many investors to seek refuge in safer assets.

Bitcoin (BTC) saw a sharp drop today, down around 5% to $103,464. Ethereum (ETH) wasn’t spared either, falling double digits — down 10% to $2,471. Solana (SOL) made an even deeper loss, dropping as much as 11% to $141. Other large-cap cryptocurrencies fell heavily, as XRP (XRP) and BNB (BNB) lost 6% and 4% respectively.

The geopolitical uncertainty moved the oil market, with crude oil up nearly 10% to $74 per barrel. Cryptocurrency investors are on edge, expecting more volatility both in the growing digital asset space and in the wider financial marketplace.