Shocking events have taken place on the geopolitical front over the past few days as the United States and Israel launched coordinated attacks on Iran. The operation took place on Saturday, February 28, 2026, and as cryptocurrency markets trade around the clock, Bitcoin’s price action quickly reflected the shock. Bitcoin has become the world’s real-time fear gauge, falling, recovering and leaving investors prepared for what comes next.
Initial shock: Bitcoin falls below $64,000
Bitcoins the price action was successful almost immediately after reports emerged that US and Israeli forces were conducting military operations in Iran. Notably, Bitcoin’s price dropped from $65,572 to $63,176 within about an hour after hearing news of the strikes.
According to data from the Kobeissi Letterover $100 million worth of leveraged Bitcoin long positions were liquidated in just 15 minutes after the news became public. The scale of the sell-off was significant: in one hour, approximately $128 billion disappeared from the entire cryptocurrency market amid a keen escalate in liquidations on global exchanges.
However, Bitcoin he didn’t stay there long after the first drop. The largest cryptocurrency began to rebound as investors speculated on developments, including confirmation of the death of Iran’s Supreme Leader Ali Khamenei during the attacks. In early Asian trading, BTC climbed back above $67,000, regaining some ground as markets reassessed the situation and eased the momentary panic.
Bitcoin rose as much as 2.21% above $68,000 following the news of Khamenei’s death, with Coingecko data showing an intraday high of $68,043. Still, the economic recovery was uneven, with price action reflecting continued uncertainty about how geopolitical tensions will be resolved. At the time of writing, Bitcoin’s price action has corrected slightly from this intraday high and is currently trading at $66,310.
What’s next: Analysts warn the rally may be brittle
Despite the rebound, market analysts on social media platforms are urging caution. The real price reaction will come on Monday when U.S. stock markets and Bitcoin ETFs reopen. At this stage, the attacks have not yet been contained, missiles continue to hit Dubai, and Iran is retaliating on the other side of the Persian Gulf. There is also a risk of Iran completely closing the Strait of Hormuz.
Bitcoin is right now almost 50% from the record high of over $126,000 in October 2024, unable to sustain the rise in prices of gold, silver and other assets. All eyes will be on the market on Monday as the entire customary investment niche begins to respond to the brunt of the world’s most dramatic geopolitical escalation in years. Bitcoin is already in a brittle state, and because of this, moving to $60,000 he could play during the week if there is any form of selling pressure.
Featured image from Pexels, chart from TradingView
