The cryptocurrency market declined on July 13, with total market capitalization dropping 1.2% to $2.14 trillion amid heightened geopolitical tensions between the United States and Iran.
According to BeInCrypto, fresh U.S. military strikes on Iran triggered a broad risk-off sentiment in financial markets. This followed reports from Iran’s Islamic Revolutionary Guard Corps (IRGC) claiming it had struck U.S. bases in Kuwait and vowed to assert control over the strategic Strait of Hormuz. U.S. officials, meanwhile, warned of a larger retaliatory wave to come.
In this climate of uncertainty, investors shifted capital toward safer or growth-oriented assets, including AI-related semiconductor stocks such as Nvidia, Micron, Broadcom, and Applied Materials.
Among digital assets, Arbitrum (ARB) saw a notable decline, falling approximately 6% to trade near $0.090. The drop came after a failed breakout attempt on July 12, which had briefly raised hopes of renewed bullish momentum for the Layer 2 Ethereum scaling solution.