Author: 1912212.eth, Foresight News
In the early morning of June 13, Bitcoin dropped from $108,000 to $102,664, with a rare seven-day decline in the four-hour chart. Ethereum dropped from around $2,800 to $2,455, with a rare nine-day decline in the four-hour chart. A number of altcoins fell sharply due to the impact of the broader market.
In terms of open interest data, according to Coinglass, the entire network had a 24-hour liquidation of US$1.12 billion, and long orders had a liquidation of US$1.04 billion. The largest single liquidation order in the entire network occurred in Binance BTCUSDT, worth US$201 million.
On June 12, glassnode monitoring data showed that Ethereum open interest had just hit a record high, breaking through $20 billion. Although the ETH price has slightly pulled back from the $2,800 level, market leverage continues to accumulate as traders use stablecoins to increase leverage.
In addition, after SharpLink Gaming, a listed company of "ETH MicroStrategy", submitted documents to the SEC to report on "PIPE investors selling holdings", its stock price plummeted by about 70% after the market, which also had a significant negative impact on ETH.
The company filed an S-3ASR registration statement that allowed the resale of up to 58,699,760 shares of more than 100 shareholders related to its private equity investment (PIPE) financing. The market once believed that the statement indicated that PIPE investors had sold their holdings. Joseph Lubin, chairman of the company's board of directors, posted on the X platform that the market "misread" the S-3 document, which only pre-registered shares for potential resales. It is a standard procedure after PIPE transactions in the traditional financial field and does not represent actual sales.
The sharp increase in futures open interest shows that the main driver of this round of price increases is not spot buyers, but leveraged futures traders. Compared with Bitcoin, which is still dominated by spot demand, Ethereum's trend is divergent. The recent surge in call option buying, coupled with the gamma hedging effect, has put ETH at significant risk of gapping. The market is becoming more fragile and sensitive to momentum changes.
When the market was expecting Ethereum to lead a strong rebound in the altcoin market, it turned downward again. What happened?
Military conflict breaks out again between Israel and Iran
In the early morning of the 13th local time, Israeli Defense Minister Katz said that Israel launched an air strike on Iran. Katz said that after launching a preemptive strike on Iran, Israel is expected to be attacked by missiles and drones soon. According to Xinhua News Agency, Israeli Prime Minister Netanyahu issued a statement on the 13th saying that the Israeli army's strike on Iran will "continue for many days."
Currently, Israel is in a state of emergency. CNN, citing Israeli sources, reported that Israel is preparing for a major retaliation from Iran, which will be larger than previous Iranian attacks on Israel. Sources said Israel intends to continue its attacks on Iran until it feels that the Iranian nuclear threat has been eliminated, although there are some doubts within the Israeli security establishment about whether this goal can really be achieved through Israel acting alone. Israel has three main targets: Iran's nuclear facilities, military assets and key figures in the Iranian military.
Iranian state television has just released news that unconfirmed reports say General Salami, commander of Iran's paramilitary Revolutionary Guard, may have been killed in an Israeli attack. The station added that another senior guard official and two nuclear scientists may also have died. The report did not provide other details.
In the international market, Brent crude oil and WTI crude oil futures both rose by more than 8%. Nasdaq futures once fell by 2%, S&P 500 futures fell by 1.8%, and Dow futures fell by 1.6%. Spot gold once stood at $3,420 per ounce during the session, up nearly 1% on the day.
The Fed has yet to cut interest rates
Since the Federal Reserve cut interest rates in December 2024, it has not softened its stance on rate cuts to this day.
US President Trump could not help but complain about this. Recently, he frequently expressed on social media that he hopes the Federal Reserve will lower interest rates. "We have a lot of short-term debt, and I like long-term low-interest debt. If we lower interest rates by 1%, it means paying 1% less."
"It is recommended that the Federal Reserve cut interest rates by 200 basis points."
Powell did not back down. The market expected Powell to be fired, but Trump also said that "Fed Chairman Powell will not be fired. He only needs to lower interest rates. Our inflation data is performing well."
Hedge fund mogul Paul Tudor Jones said U.S. President Donald Trump will choose a "very dovish" Federal Reserve chairman.
Recently, after the release of CPI data and the US core PPI for May, traders expected the Federal Reserve to cut interest rates twice this year, starting with September this year.
At a time when market liquidity is tightening, any slight disturbance can easily cause a sharp market decline.
Black swan events occur frequently
The international market has been very turbulent recently. On June 12, an Indian Airlines Boeing 787 crashed on its way to the UK. This was the first air crash of this type of aircraft. Many media reported that the death toll exceeded 240. Boeing's stock price fell by more than 6% due to this news.
Tesla founder Elon Musk and US President Trump had a heated argument, which ended recently with Musk admitting his mistake. According to Reuters, US President Trump praised Tesla. He said at an event held at the White House on California's electric vehicle regulations: "I like Tesla...I discussed electric vehicles with Elon Musk," he added. "Musk does like me."
The riots in Los Angeles are still going on, and some areas are under curfew. The Global Times reported that at least 378 people have been arrested in Los Angeles since last Saturday. The mayor of Los Angeles announced on the evening of the 10th local time that a curfew would be imposed in some areas of the city center from 20:00 that day to 6:00 on the 11th. The curfew policy will be implemented until when it is implemented after evaluation. The confrontation between US President Trump and California Governor Newsom continues. Protests against law enforcement operations to round up illegal immigrants continue to spread from Los Angeles to other parts of the United States.
Subsequent market
Rui, investment manager of HashKey Capital, tweeted, "The liquidity of altcoins has reached a freezing point. Apart from the record low trading volume of market makers, there are no buy and sell orders on the market, so the price naturally falls slowly. No one takes the good news, and the buying orders on the exchange are only 30 seconds for robots. After the new coin is listed, it starts to fall. Regardless of whether it rises or falls, the cycle of altcoin market has become much shorter. If you can't catch it, you're done for."
Trader Millionaire ERIC tweeted that after Bitcoin issued the oversold signal, it only rebounded for a short while and soon continued to fall. The price range worth paying attention to in the future is around $101,000.
