Bitcoin's price became a real-time indicator of global fear following coordinated US and Israel strikes against Iran on February 28, 2026. The cryptocurrency plunged from $65,572 to $63,176 within an hour as reports of the operation emerged. Over $100 million in leveraged Bitcoin longs were liquidated in just 15 minutes, and the broader crypto market lost approximately $128 billion in a single hour.
However, Bitcoin quickly staged a rebound, climbing back above $67,000 and reaching an intraday high of $68,043 following confirmation of Iran's supreme leader Ali Khamenei's death during the attacks. Despite the recovery, market analysts urge caution, predicting that the true market reaction will occur when US equity markets and Bitcoin ETFs reopen on Monday.
Analysts warn the current rally may be fragile, citing ongoing geopolitical uncertainty, potential Iranian retaliation, and the risk of the Strait of Hormuz closing. Bitcoin, already down significantly from its all-time high, faces further downward pressure, with a move to $60,000 a possibility if selling pressure intensifies.