Recent days have witnessed startling events on the geopolitical landscape, as the United States and Israel have initiated synchronized strikes targeting Iran. The operation occurred on Saturday, February 28, 2026, and due to the 24/7 nature of cryptocurrency markets, Bitcoin’s price action swiftly mirrored the shock. Bitcoin has emerged as the global barometer of fear, experiencing sharp declines and recoveries, while traders remain on edge, anticipating the next move. Bitcoin’s price action faced a downturn shortly after news broke regarding US and Israeli military operations taking place within Iran. In a significant move, Bitcoin experienced a drop from $65,572 to $63,176 within a mere hour overnight, triggered by news of the strikes. Data reveals that more than $100 million in leveraged Bitcoin longs were liquidated within a mere 15 minutes following the news release. The magnitude of the sell-off was substantial: approximately $128 billion was erased from the total crypto market in just one hour as liquidations skyrocketed across worldwide exchanges.
However, Bitcoin quickly rebounded after the initial plunge. The largest cryptocurrency began to show signs of recovery as traders reacted to emerging news, particularly the confirmation of the death of Iran’s supreme leader Ali Khamenei amid the attacks. In the early hours of Asian trading, BTC made a notable ascent, surpassing the $67,000 mark. This recovery reflects a market reassessment, as traders sought to alleviate the brief wave of panic that had swept through. Bitcoin surged by 2.21%, surpassing the $68,000 mark in the wake of Khamenei’s death, with Coingecko data indicating an intraday peak of $68,043. The recovery remains uneven, as price movements continue to mirror the persistent uncertainty surrounding the resolution of geopolitical tensions.
As of the latest update, Bitcoin’s price has seen a slight correction from its intraday peak and is currently trading at $66,310. In light of the recent bounce, market analysts on various social media platforms are urging caution. The true price movement is expected on Monday as US equity markets and Bitcoin ETFs resume trading. The situation remains volatile, with missiles continuing to strike Dubai and Iranian responses unfolding throughout the Gulf. The possibility of Iran fully closing the Strait of Hormuz remains a significant concern.
Bitcoin is currently down by nearly 50% from its all-time high of over $126,000 reached in October 2024, struggling to capitalize on rallies in gold, silver, and other assets. Market participants are gearing up for Monday’s opening, as the traditional investment sector braces for the impact of the most significant geopolitical escalation witnessed in years. Bitcoin finds itself in a precarious position, and due to this, a surge to $60,000 could materialize within the week if any selling pressure emerges.