Bitcoin plummeted below $64,000 early Saturday after Israel and the United States launched coordinated military strikes on Iran, triggering a rapid sell-off across cryptocurrency markets that wiped out over $100 million in leveraged long positions within 15 minutes of the news breaking.
The largest cryptocurrency dropped from roughly $65,500 to $63,700 as traders scrambled to cut risk exposure. Ethereum fell even harder, sinking more than 8% to around $1,870, while altcoins including XRP and BNB also posted sharp losses. Total crypto liquidations over the past 24 hours exceeded $445 million, with more than 135,000 traders seeing their positions forcibly closed, according to derivatives data.
Weekend Markets as Geopolitical Pressure Valve
With traditional stock and bond markets closed for the weekend, cryptocurrencies bore the full brunt of the initial market reaction. The total crypto market capitalization dropped to approximately $2.17 trillion within an hour of the headlines. The Fear and Greed Index fell further into sell-side territory as traders moved into classic risk-off positioning, with gold and the US dollar firming in contrast.
“Monday will see a significant downturn in the market as the shift towards safer assets intensifies,” one market observer wrote on X shortly after the strikes were reported.
The Strikes
Israel launched what Defense Minister Israel Katz called a “preemptive attack” on Iran early Saturday morning local time, with explosions reported across Tehran, Isfahan, Qom, Karaj, and Kermanshah in an operation codenamed “Shield of Judah”. Residents in Tehran reported smoke rising from the area housing the presidential palace and the National Security Council. A US official confirmed American military participation in the strikes, according to The New York Times.
The assault followed the collapse of US-Iran nuclear negotiations in Switzerland on Thursday, which ended without progress. In the weeks leading up to the strikes, President Donald Trump had escalated rhetoric against Tehran, stating on February 13 that regime change in Iran would be “the best thing that could happen,” while US officials told Reuters that the military was preparing for sustained operations rather than a limited strike.
What Comes Next
The Israeli military warned of possible missile retaliation and imposed a nationwide ban on schools, workplaces, and public gatherings outside essential sectors. Iran’s response remains the central uncertainty for markets heading into the new trading week. Analysts have warned that Iranian retaliation — particularly any move to close the Strait of Hormuz — could push oil prices sharply higher and complicate the Federal Reserve’s path on interest rates, adding another headwind for risk assets, including crypto.
Reference- cryptobriefing.com
coinfomania.com
incrypted.com
www.forbes.com
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