The cryptocurrency market experienced a sharp shock over the weekend following the launch of large-scale US and Israeli military operations against Iran. Bitcoin plummeted to $63,000, losing about 5% of its value in a matter of hours, while total liquidations across derivatives platforms exceeded $500 million.
Timeline of Events
On February 28, 2026, US President Donald Trump announced the beginning of major combat operations against Iran, citing missile threats and Tehran's nuclear ambitions. In coordination with Israel, a series of airstrikes were carried out targeting military facilities, command centers, and strategic infrastructure on Iranian territory.
Tehran responded with missile and drone attacks on Israeli positions and US military bases in the Persian Gulf region. Strikes were reported in Bahrain, Qatar, Kuwait, Saudi Arabia, Oman, and the UAE — everywhere US armed forces are stationed.
How the Crypto Market Reacted
Crypto markets, operating 24/7, were among the first financial venues to reflect the geopolitical shock. Bitcoin dropped from $66,200 to a local low of $63,000 within hours. The main pressure came from institutional selling — platforms including Binance, Bybit, Bitfinex, Kraken, and Coinbase recorded combined BTC outflows of approximately $5 billion.
Liquidation Wave
The sharp price crash triggered massive forced liquidation of leveraged positions. Positions worth over $500 million were closed across derivatives exchanges. Open interest on Binance has contracted by approximately 25% since the start of the year, indicating broad-scale deleveraging among traders.
Funding rates turned negative on several major exchanges — a sign of short-position dominance and declining risk appetite among market participants.
Recovery at the Start of the Week
Despite the shock drawdown, Bitcoin demonstrated resilience. By Monday, March 2, the price recovered to $69,179, posting a 3.33% daily gain. Analysts attribute the bounce to returning buyers who viewed the $63,000 level as an attractive entry zone.
Ethereum also returned to growth, rising to $2,038 with a 2.86% gain. However, overall market sentiment remains anxious — the Fear and Greed Index holds at 10 out of 100, corresponding to the extreme fear zone.
Outlook and Risks
Further market dynamics will depend on how the geopolitical situation develops. If the conflict continues to escalate, investors may further reduce risk exposure. Meanwhile, gold has already surpassed $5,300 per ounce and remains the primary safe-haven asset, while tokenized gold is posting record trading volumes.
Bloomberg analysts note that Bitcoin's recovery looks fragile amid ongoing uncertainty. The key support level remains $63,000, and losing it could open the path toward $60,000.
Comments
Your email address will not be published. Required fields are marked *