Bitcoin Sinks on Middle East Escalation, Singapore Ends Offshore Loopholes, Ethereum Holds as Altcoin Bets Rise
Crypto markets turned sharply lower early Friday in Asia as investors responded to news that Israel launched targeted airstrikes on Iranian military and nuclear installations, rattling sentiment and sending Bitcoin and major altcoins into a tailspin.
Bitcoin (BTC) dropped to an intraday low of $103,162, while Ether (ETH) slid below $2,700, marking a 4.7% and 3% drop respectively over the last 24 hours. The escalation follows comments from Israeli PM Benjamin Netanyahu, who said the strikes were aimed at dismantling Iran’s nuclear capabilities and would continue “until the threat is eliminated.”
While U.S. equities managed a modest rebound led by tech stocks, crypto bore the brunt of the geopolitical shock, highlighting its sensitivity to macro and security headlines.
Ethereum: Leading Indicator or False Signal?
Despite the sharp correction, Ethereum has been the outperformer over the past quarter, gaining nearly 40% even amid rising volatility. Analysts see this as a sign of rising risk appetite, particularly toward altcoins and newer blockchain sectors.
“Ethereum is now acting like a proxy for risk sentiment beyond bitcoin,” said Hex Trust’s Charmaine Tam. “It’s drawing in capital not just for its utility, but as a signal of broader market rotation.”
ETH’s dominance in market cap rose from 7% to nearly 10% in recent months, and ETF inflows have topped $1.25 billion since mid-May, with institutions favoring ETH for its DeFi exposure and narrative depth. Key capital inflows have also been tracked into assets like Pendle, Bittensor, and Ethereum L2s.
MAS Finally Closes Regulatory Gap After Terra/3AC Fallout
The Monetary Authority of Singapore (MAS) officially enacted rules last week requiring all offshore crypto firms registered in Singapore to obtain full licenses by June 30, ending a long-standing gray area exploited by firms like Three Arrows Capital and Terraform Labs.
Both firms operated globally while maintaining nominal Singaporean registration, causing reputational damage when they collapsed in 2022. MAS’s move marks a firm end to such regulatory arbitrage.
Exchanges like Bybit, Bitget, and WazirX are among those pulling out of Singapore in response.
“If you want Singapore’s credibility, you now need to play by Singapore’s rules,” one MAS advisor told CoinDesk.
Quantum Defense: Quranium’s QSafe Wallet Debuts
Meanwhile, crypto infrastructure is preparing for the next frontier in security — the quantum computing era.
Quranium, a startup building a post-quantum Layer 1 blockchain, has launched QSafe Wallet, which uses NIST-selected quantum-resistant encryption algorithms like ML-KEM and SLHDSA to protect assets from future quantum threats.
Unlike conventional wallets still reliant on ECDSA, QSafe encrypts keys and signs transactions using quantum-secure algorithms by default, positioning itself as the first serious entrant in quantum-resilient crypto storage.
Market Summary (as of 8:00 HKT)
- BTC: Down 4.7%, trading at $103.3K; broke 50-day SMA.
- ETH: Down 2.9%, stabilizing near $2,694; ETF inflows remain strong.
- Gold: Up 3.2% to $3,426.95, flight to safety bid.
- Crude Oil (WTI): Spiked 6.1% to $74.30 amid war fears.
- Nikkei 225: Down 1.28% on Middle East tensions.
- S&P 500 Futures: Off 1.4% in premarket trading.
- Trump Watch: President Trump called Fed Chair Powell a “numbskull” and hinted at direct intervention over rate policy.
