A missile strike on a sports hall and residential area in Lamerd, Iran killed at least 21 people on February 28, including four children and members of a women's volleyball team. Around 100 were injured. Iran's Foreign Ministry spokesperson called it a 'despicable war crime' and accused the United States and Israel of being responsible.
Within hours, Bitcoin's price cratered to roughly $63,000, erasing more than $128 billion from its total market capitalization. As reports of a ceasefire emerged, Bitcoin snapped back above $72,000.
The attack coincided with the first day of what is now being called the 2026 US-Israel-Iran conflict. Iran claims the weapon used was a US Precision Strike Missile, or PrSM. US Central Command denied involvement, arguing the munition was consistent with an Iranian Hoveyzeh cruise missile. Independent weapons analysts and media investigations linked the blast to the American PrSM.
In a separate development, US authorities froze $344 million in cryptocurrency wallet assets linked to Iran's Central Bank, exposing Iran's use of crypto infrastructure to circumvent international sanctions. The freeze highlights the scale of the workaround, which has been a focus of regulators for years.