Recent days have seen shocking developments on the geopolitical front, with the United States and Israel launching coordinated strikes against Iran. The operation took place on Saturday February 28, 2026 and, as cryptocurrency markets trade 24 hours a day, the price action of Bitcoin quickly reflected the shock. Bitcoin has become the world’s real-time measure of fear, fall, recovery and traders’ preparedness for what’s next.
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The initial shock: Bitcoin falls below $64,000
Bitcoin price developments have taken a hit almost as soon as reports emerged that U.S. and Israeli forces were conducting military operations in Iran. Notably, Bitcoin plunged from a price of $65,572 to $63,176 in about an hour the night after the strikes were announced.
According to data from the Kobeissi Lettermore than $100 million in leveraged long Bitcoin positions were liquidated in just 15 minutes after the news broke. The scale of the sell-off was significant: around $128 billion was wiped from the overall crypto market in a single hour as liquidations increased on global exchanges.
However, Bitcoin I didn’t stay in bed for long after the initial dive. The largest cryptocurrency began to rebound as traders speculated on ongoing developments, including the confirmation of the death of Iranian Supreme Leader Ali Khamenei in the attacks. Early Asian trading saw BTC rally above $67,000, regaining some ground as markets reassessed the situation and eased the momentary panic.
Bitcoin rose 2.21% above $68,000 following news of Khamenei’s death, with Coingecko data pointing to an intraday high of $68,043. The recovery has nevertheless been uneven, with price developments reflecting continued uncertainty over how geopolitical tensions will be resolved. At the time of writing, Bitcoin price action has corrected somewhat from this intraday high and is now trading at $66,310.
What’s next: Analysts warn rally could be fragile
Despite this rebound, market analysts for social media platforms recommend caution. The real price reaction will occur on Monday when US stock markets and Bitcoin ETFs reopen. As things stand, the attacks are not yet a contained event, with missiles still hitting Dubai and Iranian retaliations across the Gulf. There is also the risk of a total closure of the Strait of Hormuz by Iran.
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Bitcoin is already currently down nearly 50% from its all-time high of over $126,000 earlier in October 2024, unable to benefit from the rally in gold, silver and other assets. All eyes will be on the open market on Monday, when the entire traditional investment window begins to respond to the weight of the most dramatic geopolitical escalation the world has seen in years. Bitcoin is already in a fragile state, and because of that, a jump to $60,000 could play during the week if there is any form of selling pressure.
Featured image from Pexels, chart from TradingView
