Crypto Sentiment Remains in ‘Greed’ Zone as Tensions Rise Between Israel and Iran
June 15, 2025
By Ciaran Lyons
As geopolitical tensions escalate following recent military actions between Israel and Iran, the Crypto Fear & Greed Index has surprisingly remained in the "Greed" zone. The index is a popular gauge of overall sentiment in the cryptocurrency market, and its current reading comes despite significant price fluctuations in leading digital currencies like Bitcoin (BTC) and Ethereum (ETH).
Index Performance Amid Geopolitical Strain
The latest update of the Fear & Greed Index shows a score of 60, reflecting that market participants still hold a predominantly optimistic view despite rising fears associated with the conflict. This status persists even as Bitcoin experienced a 2.8% drop, falling to $103,000 on Friday following reports of explosions in Tehran that Israel confirmed responsibility for. As retaliatory actions ensued, including Iran launching "dozens of ballistic missiles," market observers are closely monitoring how geopolitical events will impact investor sentiment.
The Index had reported a score of 71 just a day prior, indicating that while immediate reactions to the Israel-Iran conflict have influenced market prices, they have not yet swayed the overall sentiment dramatically.
Bitcoin and Market Resilience
As Bitcoin’s price approached its all-time high of $111,970 from May 22, 2025, the latest fluctuations have raised concerns among investors. Bitcoin is currently trading at $105,540, reflecting a minor increase of 0.07% over the past week, according to CoinMarketCap data. Meanwhile, Ethereum has experienced a more substantial decrease of 10.79%, dropping to a low of $2,454 before slightly rebounding to $2,534 at the time of publication.
Crypto analysts are observing Bitcoin’s relative stability amidst ongoing geopolitical turbulence, with some noting its insulated performance compared to past conflicts. Notably, analyst Za remarked in a recent post that “Bitcoin does not seem concerned about the Israel and Iran conflict (yet),” underscoring the cryptocurrency’s enduring appeal among investors seeking safe-haven assets.
Risk of Liquidation Looms
Despite the current optimism, traders face potential risks, particularly if Bitcoin’s price dips below the significant psychological threshold of $100,000. A fall beneath this level could trigger over $1.74 billion in long positions at risk of liquidation, as indicated by data from CoinGlass. This possibility raises questions about the prevailing market sentiment and the real impact of geopolitical events on investor behavior.
Inflows and ETF Developments
In a positive sign for the currency market, spot Bitcoin exchange-traded funds (ETFs) have recorded their first week of consistent inflows, amassing $1.37 billion. This development contrasts sharply with the recent decline of spot Ether ETFs, which ended a prolonged inflow streak with a net outflow of $2.1 million.
Historical Context and Future Projections
Looking back, Bitcoin’s response to previous conflicts provides a curious context. After a direct attack from Iran on Israel in April 2024, Bitcoin’s price plummeted by 8.4%. During that period, the Fear & Greed Index noted a similar decline in sentiment, dropping from a "Greed" score of 72 to "Fear" at 43 within weeks. Such historical patterns keep analysts vigilant regarding the potential for an abrupt shift in the current market sentiment, especially if tensions continue to escalate.
Conclusion
As the situation between Israel and Iran develops, market observers will continue to watch closely as sentiment in the cryptocurrency market teeters on a fine line between greed and fear. While the Fear & Greed Index currently reflects confidence among investors, the volatility of geopolitical events suggests that this sentiment could quickly shift in the coming weeks. The market’s ability to absorb shocks, along with the resilience of Bitcoin, will serve as critical indicators of the cryptocurrency ecosystem’s future stability.