The crypto market suffered a sharp selloff. Total market cap dropped from $3.28 trillion three months ago to $2.17 trillion, with another 6% decline in a single day, per CoinMarketCap. Bitcoin slid to $63,633.07, down 6% intraday after briefly touching $62,000. Ethereum fell over 8% to $1,853. XRP slumped 10% to $1.27.
Geopolitical Shock: Israel Launches Preemptive Strike on Iran
According to The Kobeissi Letter, Israel executed a preemptive attack on Iran, with explosions reported in Tehran. U.S. forces participated, targeting intelligence headquarters and the presidential palace in two waves. The market reacted instantly: over $100 million in leveraged longs were liquidated within 15 minutes. On-chain data showed trader Machi Big Brother saw his $245,000 deposit fall to $13,580 in just four days.
Epstein Files Resurface: Trump Faces New Allegations
Political uncertainty added to the pressure. The BBC reported the U.S. Department of Justice was accused of withholding documents linking former President Donald Trump to the Epstein case. A woman alleged abuse involving Epstein; Trump denied wrongdoing. Doubts about Trump’s pro-crypto stance—he had promised to make America a crypto capital—weakened market sentiment.
Fear and Greed Index Drops to 11, Extreme Panic
The Fear and Greed Index plunged to 11, its lowest since the FTX collapse and the 2020 pandemic crash. Robert Kiyosaki warned that AI-driven layoffs, citing Jack Dorsey cutting 4,400 roles, are reducing retail traders’ risk appetite. When people fear job instability, speculative assets get hit first.
Institutions Buy the Dip: BlackRock Accumulates 9,615 BTC
While retail fled, institutions stepped in. Lookonchain reported that BlackRock received 4,082 BTC worth $269.41 million from Coinbase Prime, bringing its three-day total to 9,615 BTC ($635 million). Fresh wallets bought EDEL aggressively, spending over 80 ETH within hours of creation. Wikipedia co-founder Jimmy Wales stated that Bitcoin going to zero is unlikely even if prices fall to $10,000. Historically, fear peaks often precede recovery.
Short-term volatility may persist as war and political headlines unfold. But institutional accumulation and long-term adoption trends offer structural support beneath the panic.