Middle East Tensions Shake Crypto Markets

Market Highlights

• BTC holds steady at US$105K despite $1.16B in liquidations and geopolitical uncertainty.
• Bitcoin ETFs record a 5-day inflow streak, attracting over US$1.3B amid market volatility.
• ETH outperforms, up +1.49% as institutional interest continues to grow.
• Altcoins see mixed performance, with AERO, KAIA and AXL leading weekly gains.
• Stripe expands further into crypto with Privy acquisition, signalling growing institutional push into blockchain infrastructure.

Market Overview

It has been another eventful week across the crypto market, with escalating tensions between Iran and Israel weighing on global sentiment. Markets started the week strongly, with Bitcoin (BTC) briefly rallying above US$110,000 and Ethereum (ETH) pushing past US$2,880. However, momentum shifted midweek following the release of the U.S. Consumer Price Index (CPI) report and renewed reports of conflict in the Middle East region.

The CPI data showed annual inflation rising 2.4% year-on-year, slightly below the 2.5% forecast. While the softer reading initially appeared supportive for risk assets, crypto markets instead saw a round of profit-taking that erased much of the early week gains.

Later in the week, heightened conflict between Israel and Iran added further pressure to global markets. This additional wave of uncertainty triggered a broader risk-off move, wiping out earlier advances and driving fresh volatility across digital assets, with altcoins bearing the brunt of the declines. The total crypto market cap fell from US$3.6 trillion to US$3.4 trillion. Meanwhile, over US$1.16 billion in liquidations swept through the market, primarily impacting leveraged long positions, as most assets ended the week in negative territory.

Bitcoin (BTC)

Bitcoin (BTC) started the week strongly, with positive momentum on Monday and Tuesday seeing it top US$110,000. However, Wednesday’s CPI release triggered a sell-off, followed by renewed geopolitical tensions later in the week, which drove BTC down to lows of US$102,882. Some recovery emerged over the weekend, with buyers stepping back in to help BTC close the week at US$105,562, down -0.22%. BTC’s ability to hold around the US$105,000 level despite recent geopolitical and macroeconomic shocks suggests underlying resilience and continued investor confidence.

Institutional demand remained steady throughout the week, with Bitcoin ETFs recording five consecutive days of net inflows despite the heightened market uncertainty. According to data from Farside Investors, the streak began on 9 June with US$386 million in inflows, continuing through Friday with an additional US$301 million. In total, more than US$1.3 billion of capital flowed into Bitcoin ETFs during the five-day period.

Meanwhile, Japanese investment firm Metaplanet disclosed the purchase of an additional 1,112 BTC at an average price of ¥15.18 million per BTC (approximately US$105,000), bringing its total holdings to exactly 10,000 BTC. The acquisition, valued at roughly ¥16.88 billion (around US$110 million), marks a significant milestone in the company’s ongoing Bitcoin accumulation strategy. In addition, Metaplanet announced plans to raise up to ¥8.3 billion (approximately US$5.4 billion) over the next two years to further expand its corporate Bitcoin treasury. The move reflects growing confidence in Bitcoin as a hedge against yen depreciation and could further tighten market supply if institutional adoption continues to grow.

Ethereum (ETH)

Ethereum (ETH) also started the week strongly, briefly rallying above US$2,800 in the early part of the week. However, as broader risk sentiment deteriorated following the CPI release and escalating tensions in the Middle East, ETH surrendered part of its gains. Despite the volatility, ETH demonstrated relative strength compared to BTC. By the end of the week, ETH closed up +1.49%, extending its recent trend of modest outperformance in a choppy market.

One of the week’s more notable headlines came from SharpLink Gaming, which disclosed the purchase of US$463 million worth of ETH for its corporate treasury. The announcement sparked confusion following a separate SEC filing, contributing to a -70% decline in the company’s stock price during after-hours trading on Thursday. Despite the surrounding uncertainty, ETH’s resilience highlights the continued appetite from institutional players and reinforces its relative strength within the broader crypto market.

Altcoins

The altcoin market delivered mixed performances this week. Among the largest assets by market cap, Solana (SOL) edged slightly higher, gaining +0.34%, while XRP (XRP) and Dogecoin (DOGE) both declined, down -4.47% and -4.70% respectively.

That said, several mid and lower-cap coins saw outsized moves:

Biggest Gainers:

• Aerodrome Finance (AERO) surged +47.94% following news of a partnership with Coinbase, which will see Aerodrome Finance integrated natively into the Coinbase app.
• KAIA (KAIA) rallied +43.27% after its chairman confirmed the upcoming launch of a Korean Won stablecoin on the network, building on last month’s USDT integration.
• Axelar (AXL) gained +33.62% following its new listing on South Korea's Upbit exchange.

Biggest Losers:

• ANIME (-32.36%), GRIFFAIN (-24.00%), and MOODENG (-22.89%) - all of which had led the May rebound, saw sharp reversals over the past week as broader market conditions softened and risk appetite declined.

ICYMI - The Week in Crypto News

Here are a few key stories you may have missed:

• Stripe expands further into crypto: Payment giant Stripe acquired crypto wallet infrastructure provider Privy, following its recent US$1.5 billion purchase of stablecoin platform Bridge. The moves signal Stripe’s broader ambitions to bring stablecoin payments and crypto wallets into mainstream financial services.
• GameStop upsizes convertible notes offering: GameStop upsized its convertible notes offering to US$1.75 billion, raising speculation that proceeds may be partially allocated toward Bitcoin. GME shares closed the week down 26%.
• XRP Ledger eyes Ethereum compatibility: XRP Ledger developers announced plans to launch an Ethereum Virtual Machine (EVM) sidechain by the end of June, aimed at bridging compatibility between XRP and Ethereum ecosystems.
• Trident announces plans to build XRP reserves: Singapore-based Trident Digital Tech Holdings revealed plans to accumulate an XRP treasury of up to US$500 million, taking a different approach from the recent corporate trend favouring Bitcoin and Ethereum.
• Ondo expands onto XRP Ledger: Ondo Finance launched its tokenised U.S. government treasury fund on the XRP Ledger, opening access for qualified investors.
• Spot Solana ETF updates: The SEC reportedly asked prospective issuers of spot Solana ETFs to amend their filings within 30 days, raising speculation that regulatory approval may not be entirely off the table. 
• Avalanche hits record activity: Avalanche (AVAX) set a new all-time high in daily transactions, supported in part by growing engagement following the launch of MapleStory Universe, a Web3 game built on the Avalanche blockchain.
• Polygon leadership changes: Polygon co-founder Sandeep Nailwal announced he is taking over as CEO of the Polygon Foundation, with plans to prioritise Agglayer and PoS network growth, while winding down zkEVM development.
• AI agents arrive on Ethereum: Virtuals Protocol launched I.R.I.S., an AI-powered agent designed to automate smart contract security on the Ethereum mainnet.
• Pudgy Penguins partner with NASCAR: NFT project Pudgy Penguins signed a partnership with NASCAR to bring Pengu to NASCAR fans worldwide.

Looking Forward - The Week Ahead

Markets remain on edge as rising tensions in the Middle East continue to weigh on global risk sentiment. Geopolitical developments are likely to remain a key driver of market direction in the days ahead, alongside a busy week of macroeconomic updates and major ecosystem events across the crypto space.

Key upcoming events to watch:

• FOMC Interest Rate Decision: The U.S. Federal Reserve will announce its next interest rate decision on 18 June, with investors watching closely for any policy shifts.
• Arbitrum (ARB): Voting closes on 20 June for the DeFi Renaissance Incentive Program proposal.
• Sonic (S): Sonic’s Season 2 Airdrop Campaign launches on 18 June.
• Starknet (STRK): Starknet Staking v2 is scheduled to go live next week.
• GENIUS Act (US Regulatory): The U.S. Senate is scheduled to vote on the GENIUS Act on 17 June. If passed, the bill will proceed to the House of Representatives for further consideration. 
• BTC Prague Conference: The BTC Prague conference kicks off on Thursday, 20 June in the Czech Republic, drawing global attention as one of the largest Bitcoin-focused events in Europe.

Thanks for reading this week’s Market Pulse. We’ll be back next week with more insights from the crypto markets!