Bitcoin and Ethereum, the two giants of the cryptocurrency world, faced significant setbacks on Sunday, June 22, 2025, as geopolitical tensions in the Middle East sent shockwaves through the digital asset markets. Bitcoin, the world’s largest cryptocurrency, dipped below the psychologically important $100,000 mark for the first time in over a month, while Ethereum suffered a steep decline exacerbated by a massive transfer of tokens to a centralized exchange, sparking fears of a looming selloff.
According to data from Binance, Bitcoin dropped 4% within 24 hours, settling at approximately $99,300. Ether, the second largest cryptocurrency by market capitalization, experienced an even sharper fall, shedding nearly 10% of its value. The entire cryptocurrency market took a hit, tumbling around 7% over the same period.
The selloff occurred just hours after the United States launched airstrikes on three key nuclear sites in Iran on Saturday, June 21. This military action followed a mid-June report from a United Nations–backed nuclear watchdog accusing Iran of failing to comply with prohibitions against developing a military nuclear program. The situation escalated quickly: Israel struck Iran shortly after the watchdog’s allegations, and Iran retaliated. President Donald Trump, who authorized the U.S. entrance into the conflict, declared on social media that night, "This is an HISTORIC MOMENT FOR THE UNITED STATES OF AMERICA, ISRAEL, AND THE WORLD. IRAN MUST NOW AGREE TO END THIS WAR. THANK YOU!"
Bitcoin’s recent plunge below $100,000 caps a rollercoaster year for the cryptocurrency. Following Trump's victory in the 2024 presidential election, Bitcoin soared alongside major stock indices like the S&P 500. Investors viewed the incoming administration favorably due to Trump’s self-proclaimed "pro-crypto" stance. In February 2025, shortly after Trump took office as the 47th president, Bitcoin reached all-time highs above $100,000, buoyed by executive orders aimed at fostering the crypto industry.
However, the market remained volatile. In April, Bitcoin’s price dropped to nearly $75,000 following the announcement of severe tariffs by the Trump administration. Then, in May, Bitcoin rallied again, hitting new all-time highs as Wall Street investors poured money into cryptocurrency through U.S. exchange-traded funds (ETFs). But by June, geopolitical instability, especially in the Middle East, began to weigh heavily on prices.
Ethereum’s situation was particularly alarming due to a large transaction that raised red flags among market watchers. Blockchain tracking service Whale Alert reported that 129,392 ETH—valued at approximately $312,981,377 at the time—was transferred from an unidentified wallet, labeled '0xd47b,' to Coinbase, a major centralized exchange. This wallet had been largely inactive since November 2022, with its last notable transaction being an inflow of 6,469 ETH from another Coinbase-linked wallet.
The timing of this transfer was critical. It occurred just as Ethereum’s price was struggling to hold above $2,500 and had started to falter below $2,400. The influx of such a large amount of ETH into Coinbase raised speculation of a potential selloff, especially given the heightened geopolitical tensions. Since the transfer, Ethereum lost a key support level at $2,450, and its price has fallen sharply over the past 48 hours.
Technical analysis supports a bearish outlook for Ethereum in the short term. On the TradingView platform, Ethereum’s 4-hour chart reveals a clear bearish breakdown after it breached a crucial support line at $2,362. Overlays of the Ichimoku Cloud indicate fading bullish momentum, with previous failed attempts to break resistance leaving Ethereum vulnerable. The recent whale transfer may have been the catalyst that pushed Ethereum into this downward trajectory.
If the current trend persists, Ethereum could retest lows below $2,000. Analysts point to potential reversal targets at $2,151, $1,954, and a more severe drop to $1,750 if the selloff intensifies. At the time of writing, Ethereum was trading at $2,290, down 5.5% over the past 24 hours and 10% in the past week.
The broader context of these market movements cannot be divorced from the geopolitical turmoil unfolding. The U.S. airstrikes on Iran and the escalating conflict in the Middle East have unsettled investors, who often view cryptocurrencies as risky assets during times of global uncertainty. The rapid shifts in market sentiment underscore how intertwined digital asset markets have become with world events.
Bitcoin, which often tracks with tech stocks and the Nasdaq, has mirrored the volatility seen in traditional markets. The recent plunge below $100,000 marks a critical psychological barrier, making investors wary of further declines. Meanwhile, Ethereum’s technical breakdown and the massive whale transfer amplify concerns about potential liquidity crunches and forced liquidations.
Market experts highlight that such large transfers to centralized exchanges often precede significant selloffs, as holders move assets to platforms where they can be sold quickly. In this case, the timing alongside geopolitical tensions and market weakness suggests a confluence of factors driving prices lower.
Despite these challenges, the cryptocurrency market has shown resilience in the past, bouncing back from sharp declines triggered by external shocks. Yet, the current environment remains fraught with uncertainty as political conflicts unfold and regulatory landscapes continue to evolve.
For investors and observers alike, the recent developments serve as a stark reminder of the volatility inherent in cryptocurrencies and their sensitivity to global events. As the situation in the Middle East continues to develop, the crypto market’s trajectory will likely remain unpredictable, with traders and analysts closely monitoring both geopolitical news and blockchain activity for clues on what comes next.
