Crypto Carnage: Markets Tank Amid Iran Tensions and $100M+ Exchange Hack

Crypto markets got sucker-punched this week by a brutal one-two combo—geopolitical saber-rattling from Iran and a devastating nine-figure exchange exploit.

Geopolitical Jitters Meet Digital Asset Bloodbath

Bitcoin briefly nosedived 15% as Middle East tensions flared, proving once again that crypto markets still knee-jerk react to traditional risk-off signals—despite all the 'uncorrelated asset' hype.

Hackers Pounce on Market Weakness

While traders were distracted by macro chaos, attackers drained a major exchange's hot wallet in what appears to be the year's largest security breach yet. The timing reeks of predator sophistication—or just Wall Street-grade opportunism.

Silver lining? The dip buyers are already circling. Because nothing gets crypto degens more excited than a good old-fashioned fire sale—except maybe a leveraged long on that fire sale.

TLDR

• Bitcoin dropped 1.16% and Ethereum fell 2.79% as geopolitical tensions between the US and Iran weigh on markets
• President Trump demands Congress pass the GENIUS Act stablecoin bill “ASAP” before August recess
• China’s central bank plans global expansion of digital yuan through new Shanghai operations center
• Iranian exchange Nobitex loses over $81 million in hack claimed by Israel-linked group
• Crypto sentiment has cooled from May’s “extreme greed” to more neutral levels

Cryptocurrency markets faced downward pressure on June 19, 2025, as geopolitical tensions and security concerns dominated trading. Bitcoin fell 1.16% while ethereum dropped 2.79% in 24-hour trading.

The decline came as President Donald TRUMP demanded Iran’s “unconditional surrender” and called its leader an “easy target.” These statements heightened fears of potential US military intervention in the Iran-Israel conflict. Oil price volatility tied to Middle East tensions also contributed to broader market uncertainty.

The crypto market sentiment has shifted from the “extreme greed” levels seen in May to more neutral territory. The Federal Reserve’s rate decision on June 18 appeared already priced into markets, with traders expecting a 99.9% chance of no rate cuts.

Bitcoin’s price action has been largely news-driven recently, including reactions to the public dispute between Elon Musk and Donald Trump on June 13. The cryptocurrency has been consolidating around the $104,600 monthly open level, with potential support at $102,000 and $100,000 if selling continues.

Regulatory Push Gains Momentum

President Trump made a direct appeal to House lawmakers on Thursday, urging them to pass the stablecoin-regulating GENIUS Act quickly. Trump posted on Truth Social that he wants the bill on his desk “ASAP” with “NO DELAYS, NO ADD ONS.”

The Senate passed the GENIUS Act in a 68-30 vote on Tuesday. The bill faced delays last month when Democrats withdrew support over concerns about Trump’s potential conflicts of interest from his crypto businesses. The legislation now moves to the House, where Republicans hold a slim majority.

China Expands Digital Currency Ambitions

China’s central bank chief Pan Gongsheng announced plans to expand the digital yuan’s global reach through a new international operations center in Shanghai. Speaking at the Lujiazui Forum, Pan outlined China’s vision for a “multipolar” currency system.

This approach contrasts with the current system dominated by the US dollar and euro. Pan criticized traditional cross-border payment systems as vulnerable to “geopolitical risk” and potential weaponization through sanctions.

Major Exchange Hack Rocks Industry

Iranian cryptocurrency exchange Nobitex suffered a major security breach, losing over $81 million in digital assets. The attack targeted hot wallets across the Tron network and Ethereum-compatible blockchains.

Blockchain investigator ZachXBT identified the use of vanity addresses in the attack. The hackers used addresses including “TKFuckiRGCTerroristsNoBiTEXy2r7mNX” to steal $49 million initially. A pro-Israel group called “Gonjeshke Darande” claimed responsibility for the hack.

Nobitex confirmed the unauthorized access to some hot wallets but stated that user funds in cold storage remain secure. The exchange promised full compensation through its insurance fund and company resources.

Security firm Cyvers attributed the breach to “critical failure in access controls” that allowed attackers to infiltrate internal systems. The stolen funds have not moved from the attacker’s wallets as of the latest reports.

The Nobitex hack adds to a growing list of crypto security incidents in 2025, with more than $2.1 billion in digital assets stolen this year according to CertiK data.