Crypto Journalist
Amin Ayan
Crypto Journalist
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Bitcoin clawed back losses within a day after geopolitical turmoil rattled markets across the Middle East, rising sharply following US-Israeli air strikes on Iran and reports that Iran’s Supreme Leader Ayatollah Ali Khamenei had been killed.
Key Takeaways:
- Bitcoin plunged to $63K after US-Israeli strikes on Iran but rebounded about $5,000 within 24 hours to around $67K–$68K.
- The volatility wiped out roughly 157,000 leveraged traders, triggering about $657 million in liquidations across longs and shorts.
- Markets now hinge on whether the Middle East conflict escalates or stabilizes, which could determine Bitcoin’s next move.
The cryptocurrency fell to nearly $63,000 on Saturday as the first reports of military action spread, but quickly reversed course.
By early Sunday, Bitcoin reached about $68,200, according to TradingView data, recovering roughly $5,000 in less than 24 hours.
Bitcoin Holds $67K as Volatility Triggers $657M in Liquidations
At the time of writing, Bitcoin is hovering around $67,350, roughly where it traded before the escalation.
The move triggered heavy derivatives activity. Data from CoinGlass showed about 157,000 traders were liquidated over the past day, with total liquidations reaching approximately $657 million.
Long and short positions were wiped out in nearly equal proportions as volatility surged.
Iran’s Supreme National Security Council said Khamenei was killed in strikes targeting leadership and military infrastructure.
Senior officials, including Islamic Revolutionary Guard Corps commander Mohammad Pakpour and Defense Council secretary Ali Shamkhani, were also reported dead.
Tehran has since launched counterattacks across Israel and several Gulf states hosting US assets, with explosions reported in multiple cities and airports suspending operations.
The sudden escalation marks one of the most significant moments in Iran since the 1979 revolution and has triggered an urgent leadership succession process.
Regional governments and global markets are closely monitoring whether the conflict widens or stabilizes.
Crypto markets initially reacted like risk assets, dropping alongside global uncertainty. However, the rebound suggests traders began pricing in a contained conflict or possible de-escalation.
Market commentator Ash Crypto wrote that the rally reflected expectations the confrontation may not spiral into a prolonged war.
If tensions ease before traditional markets reopen, he suggested Bitcoin could retain its gains.
Bitcoin Rebound Follows Third-Worst February on Record
Despite the rapid recovery, Bitcoin remains trapped within a three-week sideways range. The latest bounce also comes after a difficult month for the asset.
February closed as Bitcoin’s third-worst February on record, with the price falling just under 15%. Only 2014 and 2025 saw steeper declines, according to CoinGlass.
The broader yearly trend remains weak. Bitcoin is down roughly 23% since the start of the year, putting it on track for its poorest first-quarter performance since 2018.
For now, traders appear focused less on technical levels and more on headlines. Further military developments, diplomatic signals or retaliation could continue to drive short-term price swings, leaving the market sensitive to events far beyond the crypto sector.
As reported, Wikipedia co-founder Jimmy Wales has sparked debate by saying Bitcoin could eventually fall below $10,000, arguing the network may continue operating for decades but never fully become global money or a dependable store of value.
He questioned whether institutional adoption or ETF inflows guarantee stability, suggesting that without clear real-world utility the asset could drift to “hobbyist levels” by 2050.
His comments revive the long-running dispute over Bitcoin’s identity as digital gold, payment system or speculative investment.