Cryptocurrency price decline due to Iran bombings: will there be a market recovery?
On the night of June 21-22, 2025, the United States launched airstrikes on three Iranian nuclear facilities: Fordow, Natanz, and Isfahan.
The White House said the operation involved B-2 bombers and cruise missiles, and all intended targets were hit.
The news immediately heightened geopolitical risks: investors began to flee risky assets, and the cryptocurrency market sank.
Bitcoin briefly fell to around $100,945 before stabilizing around $102,470 at press time.
Ethereum (ETH). The second-largest token by market capitalization reacted with the sharpest movement: at one point, the price dropped as much as -7.7% to ~$2,200, but by the evening, the price had returned to ~$2,272, recouping some of its losses.
Solana (SOL). Amid the panic, Solana suffered more than most: the daily low was around $121 (-5%), but then the price rose to $135, which softened the intraday decline to 3-4%.
Why have major cryptocurrencies fallen in price?
Many investors are wondering what really happened and why the cryptocurrency market fell so sharply:
- Panic selling ("risk-off"): The rapidly escalating conflict forced traders to lock in profits and invest in gold and Treasury bonds. In a matter of hours, the crypto market capitalization fell by approximately $40 billion.
- Liquidity squeeze and increased volatility: During geopolitical shocks, market makers reduce their volumes, spreads widen, and even small orders move the price more. This is why Bitcoin, Ether, XRP, and Solana all simultaneously experienced 3-5% declines.
- Flow of funds into safe haven assets: At the same time, gold and oil prices rose, while yields on ten-year Treasuries fell: a classic "safe haven" scenario.
Why the Cryptocurrency Fall May Be Temporary
Most experts agree that the current market collapse is only temporary and that prices will recover soon:
Historical precedent . During the escalation in the Persian Gulf in 2023 and the aftermath of the Middle East conflict in the spring of 2025, the crypto market recovered within a few days, exhibiting a V-shaped rebound.
The strike was limited in nature . The strikes affected only nuclear facilities; global supply chains and mining energy were unaffected, meaning there are no fundamental reasons for a long-term revaluation of crypto assets. bloomberg.comm.economictimes.com
Negotiations are underway . The US State Department and the Iranian Foreign Ministry have already announced their readiness for "de-escalation steps" through Qatari mediation; such signals have traditionally quickly reduced the risk premium in Bitcoin's price.
Early signs of a reversal . After touching $100, Bitcoin is trading above $102,000 again, and altcoins are paring their intraday losses—an indication that the panic is contained.
The decline caused by the airstrikes on Iran appears to be emotional and short-lived. If geopolitics don't escalate further, the cryptocurrency market has a high chance of recovering in the coming days.
For long-term investors, such dips often become entry points, but buying decisions should be made while closely monitoring diplomatic negotiations and the overall dynamics of commodity markets.
Use the decline to open buy trades through trusted cryptocurrency brokers .
