Bitcoin fell below the $64,000 mark over the weekend after the United States and Israel launched strikes on targets across Iran, triggering a broad risk-off move across global markets.
According to Bloomberg’s report, Bitcoin declined by as much as 3.8% to $63,038, while Ether, the second-largest digital asset by market capitalisation, slid 4.5% to $1,835.
In the immediate aftermath of the development, roughly $128 billion was wiped off the total market value of digital assets, according to data from CoinGecko.
The selloff followed reports of multiple large explosions in Tehran on Saturday, escalating geopolitical tensions in the Middle East and prompting investors to cut exposure to riskier assets, including cryptocurrencies.
What they are saying
For Bitcoin, the latest losses extend a months-long downturn that began in October, when approximately $19 billion in leveraged positions were liquidated shortly after the asset peaked above $126,000.
Market analysts say Bitcoin often acts as a “pressure valve” during major geopolitical or macroeconomic events that occur outside traditional trading hours.
- “As always, when critical events take place during the weekend, Bitcoin plays the role of pressure valve,” said Justin d’Anethan, head of research at Arctic Digital.
Bitcoin later pared some of its losses in the hours following the strikes.
According to d’Anethan, the initial market reaction was not as severe as some investors had anticipated, partly because much of the excessive leverage had already been cleared from the system.
- “With a lot of the leverage already cleared out and exhausted sellers, there’s only so much impact macro events can have,” he said, noting that while further downside remains possible, a significant portion of the market’s earlier volatility has already been flushed out.
Get up to speed
Amid the unfolding military action, US President Donald Trump addressed Iranians in a video posted on Truth Social, urging citizens to take control of their government once the campaign concludes.
- “The hour for your freedom is at hand,” Trump said, adding that the opportunity to assume control of the government could be a rare one for generations.
The United States and Israel launched a wave of strikes against targets in Iranian cities on Saturday, triggering explosions and columns of smoke in the capital, Tehran.
- The Israeli government had announced the pre-emptive attack, with President Donald Trump saying that the US had begun major combat operations.
- According to a CNN report, explosions have been reported in multiple Iranian cities, including Tehran, with the US military planning for several days of attacks, according to two sources.
- Hours later, Iran launched retaliatory missile strikes against American military installations across the Middle East, with a reported direct hit on the US Navy’s Fifth Fleet headquarters in Bahrain.
Bahrain’s National Communication Centre confirmed on Saturday that a missile struck a service facility at Naval Support Activity Bahrain in the Juffair/Mina Salman port area.
What you should know
Earlier on Monday, Bitcoin fell sharply as renewed uncertainty over United States tariff policy rattled global markets, dragging down other major cryptocurrencies alongside broader risk assets.
- The world’s largest digital asset dropped as much as 4.8% to about $64,300, its lowest level since February 6.
- Ether, the second-largest cryptocurrency, declined even more, sliding 5.2% as selling pressure intensified across the market.
Saturday’s geopolitical shock compounds an already fragile crypto market.
