TLDR
- Bitcoin dropped close to 5% approaching $63,000 after joint US-Israeli strikes targeted locations in Iran
- The digital currency hit its lowest price point since February 5’s market downturn when it briefly dipped below $60,000
- Israeli Defense Minister Israel Katz declared a national emergency across Israel
- Bitcoin’s 24/7 trading availability makes it a primary vehicle for expressing risk-off sentiment when conventional markets are closed
- Traders sold bitcoin aggressively as one of few highly liquid assets available for trading during weekend periods
Bitcoin, the premier digital asset by market capitalization, suffered a sharp downturn on Saturday, February 28, 2026, dropping toward the $63,000 mark after military strikes conducted jointly by Israeli and American forces targeted Iran.
The cryptocurrency lost approximately 5% of its valuation in just a matter of minutes, marking a substantial setback for digital asset markets.
This rapid decline brought bitcoin to price levels unseen since February 5, when the cryptocurrency briefly slipped under the $60,000 mark during an earlier market correction.
Israel Katz, serving as Israeli Defense Minister, proclaimed a nationwide emergency status across all of Israel as the military campaign began.
An American government official confirmed U.S. participation in the joint operations, according to reporting from The Wall Street Journal.
Israeli authorities described the operation as a “preemptive strike,” as documented by Reuters through statements from the country’s defense establishment.
Why Bitcoin Sold Off First
In contrast to conventional stock and bond exchanges that shut down over weekends, Bitcoin trades around the clock without pause, maintaining availability every hour of every day.
This perpetual market access makes bitcoin one of the limited number of major, highly liquid assets that traders can sell during periods of elevated risk when traditional financial markets remain inactive.
This pattern has emerged repeatedly in the past. Bitcoin commonly sees sharp downward pressure during geopolitical turmoil, frequently recovering once standard market hours commence.
“Bitcoin just dropped off a cliff,” remarked one market participant on X, adding a prediction that “Monday will be a bloodbath in the market.”
Geopolitical Context
The strikes follow multiple weeks of increasing American military deployment and failed diplomatic negotiations regarding Iran’s nuclear program.
Financial analysts had been evaluating potential ramifications of Iranian tensions for bitcoin, gold markets, and traditional equities.
The military engagement raises the specter of broader regional conflict in an area of vital global economic importance.
During recent months, bitcoin’s price action has decoupled from gold, calling into question its characterization as a safe-haven asset or legitimate “digital gold” alternative.
As of Saturday’s early trading hours, bitcoin was trading around the $63,000 level, with expectations of continued turbulence when traditional markets reopen for Monday trading.
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