Bitcoin drops to $63,000 as Iran strikes rattle global markets

Monday 02 March 2026 - 14:07

By: Dakir Madiha

Bitcoin drops to $63,000 as Iran strikes rattle global markets

Bitcoin fell to around $63,000 after coordinated US and Israeli attacks on Iran unsettled investors and triggered a rush out of riskier assets. The leading cryptocurrency slid nearly 4 percent in rapid trading, dropping from the mid‑$65,000 area to an intraday low near $63,038, before stabilizing just below $64,000. Data providers estimated that about $128 billion in value was wiped from digital asset markets during the initial sell‑off, as highly leveraged positions were forced to unwind.

The strikes targeted Iranian military and nuclear facilities and were followed by reports of explosions in Tehran, heightening fears of a broader regional conflict in the Middle East. Soon after the first wave of attacks, Iranian state media confirmed the death of Supreme Leader Ayatollah Ali Khamenei, a development seen by traders as a major geopolitical shock with unpredictable consequences for energy supplies and global growth. Analysts said the timing of the offensive, which landed while US equity and futures markets were closed, left cryptocurrencies among the only major assets trading in real time and therefore acting as an early barometer of market stress.

Other major tokens also fell sharply. Ethereum dropped about 4.5 percent to roughly $1,835, while large altcoins such as Solana and XRP registered outsized declines as traders rapidly cut exposure across the sector. Derivatives platforms saw a wave of liquidations, with hundreds of thousands of accounts affected and forced position closures totaling hundreds of millions of dollars across long and short bets.

Bitcoin briefly recovered some ground after confirmation of Khamenei’s death, with prices rebounding toward the high‑$60,000 range as some investors bet against a sustained escalation. The bounce faded as details emerged of Iranian missile and drone strikes on Israeli territory and US bases in the Gulf, as well as warnings from Tehran about restricting shipping through the Strait of Hormuz. By Monday, Bitcoin was trading close to where it stood before the attacks but remained prone to abrupt swings as headlines shifted between fresh military action and calls for restraint.

The shock to energy markets added a deeper macroeconomic layer to the crypto move. The near‑halt of tanker traffic in the Strait of Hormuz, which carries roughly one‑fifth of global crude flows, pushed Brent futures up as much as 13 percent to above 82 dollars a barrel, their highest level since early 2025. Goldman Sachs analysts estimated that the conflict had embedded a double‑digit risk premium in oil prices, while other research houses warned that a prolonged disruption could drive benchmarks toward or beyond 100 dollars. Higher energy costs could reignite inflation pressures and force central banks, including the US Federal Reserve, to keep interest rates elevated for longer, undermining one of the main arguments used to support bullish long‑term Bitcoin forecasts.

The episode extends a broader corrective phase for Bitcoin, which has retreated significantly from its 2025 peak above 120,000 dollars even before the latest escalation. On prediction platforms such as Polymarket, traders have shifted toward more cautious scenarios, assigning meaningful odds to the possibility that Bitcoin revisits lower levels in the coming months rather than racing back to six‑figure territory. Market strategists say the combination of geopolitical risk, volatile energy prices, and uncertainty over future US monetary policy is likely to keep crypto trading conditions unstable, with Bitcoin oscillating between its role as a speculative asset and a perceived hedge in crises.