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13.06.2025 11:12 AM
The Cryptocurrency Market Collapsed — Here's Why

Bitcoin and Ethereum have crashed. Bitcoin lost around 3.5% during morning trading alone, while Ethereum dropped by more than 10%, then slightly rebounded.

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Panic swept through the cryptocurrency market immediately after Israel launched airstrikes on Iran's nuclear facilities. Investors, accustomed to digital asset volatility, were this time confronted with an unprecedented level of fear. Prices collapsed within hours, wiping out billions of dollars in investments. The reasons behind such a sharp reaction are clear: geopolitical uncertainty and the looming threat of a full-scale war in the Middle East. Investors rushed to abandon riskier assets, favoring gold, the U.S. dollar, and other traditional safe havens. Under these conditions, cryptocurrencies — despite their decentralized nature — are proving especially vulnerable. All that remains is to hope the conflict does not escalate into a full-blown war and that the situation stabilizes.

On a more positive note, 116 public companies now hold BTC on their balance sheets, up from 312,000 coins a year ago to nearly 810,000. Michael Saylor's Strategy is the largest player in this space.

This trend underscores the growing recognition of Bitcoin not just as a speculative asset but as a potential capital preservation tool amid a volatile macroeconomic environment. Corporations diversifying their holdings by including BTC on their balance sheets are signaling confidence in the long-term value and resilience of cryptocurrency. The increasing number of companies investing in Bitcoin also reflects a shift in how digital assets are perceived in the business world. Whereas crypto was once associated primarily with retail investors and tech enthusiasts, it is now increasingly viewed as a legitimate asset class worthy of institutional interest.

The growing presence of BTC on corporate balance sheets has a generally positive impact on the cryptocurrency market. Once the military conflict in the Middle East subsides, demand in the crypto space is expected to rebound — making current price levels potentially attractive for buyers. In the long term, wider adoption of Bitcoin by public companies could become one of the key drivers of cryptocurrency market growth. It may also contribute to broader acceptance of BTC as a payment method and further development of digital asset infrastructure.

Trading Recommendations:

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Bitcoin (BTC):Buyers are now targeting a return to the $104,400 level, which opens a direct path to $105,100 — from there, it's a short step to $105,700. The ultimate target is the high around $106,200, a breakout above which would confirm a strengthening bull market. In case of a decline, buyers are expected around $103,500. A drop below this level could quickly push BTC down toward $102,900. The furthest downward target is the $102,100 level.

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Ethereum (ETH): A firm consolidation above the $2524 level opens a direct path toward $2555. The ultimate upward target is the high around $2592 — a breakout above it would signal a return of buyer interest. If Ethereum declines, buyers are expected around $2479. A drop below this level could quickly drag ETH down to $2448. The furthest downward target is the $2414 level.

On the Chart:

  • Red lines represent support and resistance levels where price slowdowns or upward momentum are expected;
  • Green line is the 50-day moving average;
  • Blue line is the 100-day moving average;
  • Light green line is the 200-day moving average.

A crossover or test of these moving averages typically either halts price action or triggers momentum.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
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