Bitcoin Faces Turbulence: Price Drops to $63K Amid US and Israel Strikes on Iran

In the wake of coordinated military strikes by the US and Israel on Iran, the cryptocurrency market experienced significant turmoil. Bitcoin's price plunged as much as 3.8%, settling at $63,038, while Ethereum saw a nearly 9% decline. Over 152,000 traders were liquidated across various crypto platforms, illustrating the intense panic gripping the market as traditional stock and bond markets remained closed for the weekend.

Key Takeaways

Bitcoin's price dipped to $63,038 following military strikes by the US and Israel on Iran.
Ethereum experienced a nearly 9% drop.
The cryptocurrency market faced a heavy sell-off, resulting in more than $128 billion in losses.
Liquidations across crypto markets totaled approximately $515 million.
The Fear and Greed Index fell to 14, indicating extreme fear among investors.

Bitcoin

US and Israel Target Iran’s Military and Nuclear Facilities

US President Donald Trump confirmed on February 28 that “major combat operations” had commenced against Iran, specifically targeting missile systems, naval assets, and nuclear capabilities. Israel's Defense Minister Israel Katz described the operation as preemptive, highlighting the close coordination between the two nations. The sudden and expansive nature of the assault took many by surprise, prompting a swift response from Iran.

Reports indicate that Iran retaliated with multiple missile and drone strikes aimed not only at Israel but also at US military installations in the Gulf region. A US military base in Bahrain sustained strikes, while Qatar and the UAE managed to intercept missiles that flew over their territories. Explosions were reported in Dubai, and Bahrain closed its airspace as a precaution. Iran's semi-official news agency, Tasnim, declared that all US bases and interests in the region would be considered legitimate targets.

BTCUSD now trading at $64,779. Chart: TradingView

Crypto Markets Bear the Brunt of Panic

With traditional financial markets closed, the cryptocurrency market was the only major financial sector operating. Bitcoin trades continuously, 24/7, making it the primary asset to absorb the panic of the weekend.

The selling frenzy was widespread and rapid. According to reports, the overall market value of digital assets plummeted by approximately $128 billion in response to the military actions. Bitcoin fell from around $66,000, hitting a low of $63,038 before stabilizing near $64,000. Ethereum fell below $1,850, while XRP dropped around 8% to approximately $1.29. Other cryptocurrencies such as Solana, Dogecoin, Cardano, and Chainlink reported losses ranging from 8% to 12%.

Data from CoinGlass revealed that Bitcoin futures liquidations alone reached nearly $192 million, with futures trading volume spiking to about $68.27 billion. This surge indicates that the derivatives markets were responsible for amplifying the price movement rather than spot sellers alone. Within a span of 24 hours, total liquidations across all crypto assets amounted to $515 million. The Fear and Greed Index, a well-known gauge of market sentiment, plummeted to a reading of 14, signaling extreme fear among traders.

Featured image from Getty Images, chart from TradingView