Crypto Reacts to Middle East Escalation

DAILY MARKET OVERVIEW

Markets Shaken

👋 Hey, Crypto Enthusiasts! Markets are rattled, Bitcoin's down, and fear is up. Let’s cut through the noise and make sense of the chaos.

🔻 Bitcoin Dips Below $104K After Israeli Strikes on Iran

The crypto markets woke up to red this morning.

Bitcoin dropped sharply to $102,700 after Israel launched targeted strikes on Iran’s nuclear and missile sites, including several locations in the capital, Tehran. This ignited fears of a broader conflict in the Middle East.

Although BTC has slightly bounced since the initial panic, it's still down around 2% in the past 24 hours while Altcoins are bleeding even harder.

📰 What Happened?

Late last night, Israeli Prime Minister Benjamin Netanyahu confirmed that Israel had carried out military strikes on Iran. He said the goal was to eliminate what he called a "direct threat."

• The attack came shortly after a report from the International Atomic Energy Agency (IAEA) revealed that Iran had violated limits on uranium enrichment. This was the first breach of its kind in over 20 years.
  

• U.S. President Donald Trump responded cautiously. He warned that the situation could lead to a "massive conflict" but said he still hopes for a diplomatic solution.

On the prediction platform Polymarket, traders had estimated only a 30% chance of Israeli military action by July. The market was clearly caught off guard, and the reaction was immediate.

📊 Traditional Markets React

The impact wasn't limited to crypto. Traditional markets also felt the shock as investors moved into safer assets.

• European stocks fell, and U.S. futures opened lower as the news broke. Risk appetite quickly faded.
  

• Meanwhile, safe-haven assets saw strong demand. Gold jumped, oil prices surged, and U.S. Treasury yields dipped as traders sought stability.
  

• In the currency markets, the dollar strengthened against the euro and pound but weakened against the yen and Swiss franc, reflecting a typical flight to safety.

❓️ What’s next for Crypto?

While Bitcoin is still clinging to six figures, most altcoins are getting crushed. If geopolitical pressure continues, BTC could retest the $98K support zone. That would likely trigger deeper altcoin pain.

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SOCIAL SENTIMENT

Traders’ Take

🤔 Market watchers are split:

• Some see this dip as a buy-the-fear opportunity

• Others warn we’re heading lower before stabilization

In April, a similar scenario played out. Iran launched drone strikes on Israel. Crypto dumped briefly, then rallied hard days later.

📈 Bigger Picture: Macro Bull Still Alive

Despite the sudden chaos, nothing has changed in Bitcoin’s long-term setup.

ETF inflows continue. Inflation data is stable. Institutional appetite remains strong.

The uptrend is intact.

Zoom out, and the fundamentals remain bullish. These types of fear-driven dips are historically where some of the best entries happen.

🗓️ Watch Closely: What’s Next?

• Will Iran retaliate?

• Will the U.S. intervene?

• How will markets react if the conflict escalates?

Expect volatility to stay high heading into the weekend. Keep an eye on key technical levels. $100K is psychological support and $98K could be the next big test.

Stay informed. Stay calm. And don’t let fear write your trading plan.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

GameStop Expands $2.25B Note Sale to Support Bitcoin Strategy
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Shopify Brings USDC Payments to 34 Countries
Shopify integrates USDC via Coinbase and Stripe, letting global merchants accept stablecoin payments without managing crypto infrastructure.

Amazon and Walmart Explore USD Stablecoins
Retail giants are considering their own stablecoins, pending U.S. legislation, to improve settlement speed and reduce transaction costs.

SharpLink Stock Crashes After Filing Confusion
Ethereum treasury firm SharpLink plunges over 70% after routine share resale filing sparks panic, despite leaders denying any stock sales.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Jesse Eckel – Altcoin ETFs Are Coming, Will Crypto Go PARABOLIC? (13.06.2025 Summary)

Jesse Eckel believes we're on the verge of a massive shift in the crypto market, driven by the arrival of altcoin ETFs. Here's the breakdown:

1. Altcoin ETFs Are Coming Fast

• ETFs for Solana, Litecoin, XRP, Dogecoin, and even basket products (holding multiple tokens) are likely to be approved by late 2025

• Bloomberg Intelligence gives 90%+ approval odds for several of them

• The SEC’s attitude has shifted dramatically under new leadership. Crypto is no longer enemy #1

2. Wall Street Is Getting In

• These ETFs give Wall Street firms legal access to altcoins for the first time

• That means billions in new liquidity could enter the alt market since altcoins are tiny compared to Bitcoin

• Example: BlackRock manages $11 trillion, while the entire crypto market is only $3 trillion

3. Altcoin Prices Could Explode

• As Wall Street starts buying altcoins to back these ETFs, prices could skyrocket even without global liquidity rising

• Think of it like opening a canal from Wall Street’s ocean of money into crypto’s tiny pond

4. Massive Second & Third Order Effects

• Prices up → media hype → retail FOMO → more buying → repeat

• ETFs make altcoins seem normal, safe, and “financial adviser-approved”

• This could lead to dozens of ETFs across every crypto theme: AI, DeFi, Layer 1s, staking, and more

• As more ETFs get approved, the race begins for which alt will get one next

5. Which Alts Could Benefit Most?

Jesse suggests keeping an eye on:

• AI tokens (huge narrative, strong retail appeal)

• Altcoins connected to ETF winners (if Solana gets one, think Avalanche, Sui, Polygon)

• Tokens with real products and cash flow (strong fundamentals that institutions like)

• New on-chain startups using crypto rails (early-stage projects with big upside)

6. All This Might Coincide with a Liquidity Boom

• Jesse predicts a global liquidity spike in late 2025, right when ETFs may launch

• Combined with ETF hype and Wall Street access, this creates a perfect storm for an epic alt season

Final Takeaway

If these ETFs are approved and liquidity rises at the same time, we could see the largest altcoin bull run in history. Jesse calls it “stupid obvious” when you zoom out and look at the full picture.

Benjamin Cowen – Inflation Rises to 2.4% (13.06.2025 Summary)

Benjamin Cowen breaks down the latest CPI report and its potential effects on rate cuts, inflation trends, and investor sentiment.

Key Inflation Numbers

• Headline CPI: 2.38% (rounded to 2.4%), slightly higher than last month but lower than the expected 2.5%

• Core CPI: Continues to decline, now at 2.77% from 2.78% the prior month

• Inflation is still trending down overall, despite a minor monthly uptick

The Fed Is Still Holding Off

• The next interest rate cut is likely in September

• CME Group data shows only a 3% chance of a cut in June and a 22% chance in July

• Rising unemployment over the summer could influence cuts, but for now the Fed remains cautious

Main Drivers of Inflation

• Housing and food & beverages are doing the heavy lifting in the CPI number

• Other categories like transportation and apparel are now deflationary

• If housing inflation drops, headline CPI could fall significantly, since housing makes up a large portion of CPI

Tariffs Add Uncertainty

• Tariffs may cause short-term inflation spikes, but Benjamin believes any such increase would be brief

• He still leans toward a disinflationary outlook, backed by high interest rates and tight monetary policy

Comparing to the Past

• Inflation one year ago was 3.24%, two years ago it was 8.53%

• Despite small bumps, the overall trend is clearly downward

• Talk of a 1970s-style inflation resurgence seems unlikely at this stage, though tariffs introduce risk

Final Thoughts

• The base case remains: a rate cut in September, likely following a small rise in unemployment

• The biggest concern is whether tariff fears delay rate cuts, even if inflation is under control

• For crypto, midterm years (like 2026) are historically weaker, so timing around monetary policy matters

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