TLDR
- BTC plummeted to $63,000 following coordinated U.S.-Israeli airstrikes that killed Iran’s Supreme Leader Ayatollah Ali Khamenei
- Within hours, Bitcoin rallied back to $68,000 as traders viewed the development as possibly de-escalating regional tensions
- More than 157,000 positions were liquidated across 24 hours, totaling approximately $657 million in wiped-out positions
- February ended as Bitcoin’s third-worst month in history, declining nearly 15%
- Other major cryptocurrencies including Ethereum and XRP mirrored Bitcoin’s recovery trajectory
Bitcoin experienced a dramatic plunge to $63,000 on Saturday following coordinated military strikes by the United States and Israel targeting Iran, which resulted in the death of Supreme Leader Ayatollah Ali Khamenei.
The selloff was swift and brutal. BTC hemorrhaged thousands of dollars in value within a matter of hours as cryptocurrency traders scrambled to react to the unprecedented geopolitical development.
Iranian officials subsequently verified Khamenei’s death through state-controlled media outlets. According to Iran’s Supreme National Security Council, the strikes targeted and hit his office, killing him on site.
President Donald Trump took to Truth Social to acknowledge the strike’s success, describing Khamenei as “one of the most evil people in history.”
Additional high-ranking Iranian officials perished in the coordinated assault, including the commander of Iran’s Revolutionary Guard Corps and Iran’s Defense Council secretary.
Following official confirmation of the strike’s outcome, Bitcoin initiated a strong recovery. By Sunday morning’s early hours, BTC had surged back to $68,200 on the Coinbase exchange.
This represented a remarkable $5,000 price reversal in less than one day, translating to approximately $80 billion in market capitalization movement.
Massive Liquidations Hit Overleveraged Positions
The violent price action resulted in approximately 157,000 traders seeing their positions liquidated throughout the 24-hour window, with aggregate liquidations hitting $657 million, distributed almost equally between long and short leveraged positions, based on data from CoinGlass.
Crypto analyst Ash Crypto suggested that market participants interpreted the elimination of Khamenei as potentially signaling an endpoint to escalating U.S.-Iranian hostilities, catalyzing the sharp recovery rally.
Ethereum rebounded toward the $2,000 threshold, while XRP recovered to approximately $1.40 as the broader cryptocurrency market mirrored Bitcoin’s upward momentum.
Bitcoin’s rebound restored prices to Friday’s levels, though it continues trading within a three-week consolidation range.
February Marks Historic Downturn for Bitcoin
Notwithstanding the weekend’s price recovery, Bitcoin concluded February with a nearly 15% decline, ranking as the third-most devastating February performance in the cryptocurrency’s existence.
This marked only the fourth instance since 2013 that Bitcoin finished February with negative returns. The asset’s worst February occurred in 2014 with a 31% collapse.
BTC is additionally tracking toward its most punishing first quarter performance since 2018, having surrendered approximately 23% of its value since the start of January.
Iran’s Revolutionary Guards have initiated retaliatory military operations against nations providing bases to U.S. forces, with at least one fatality confirmed following a strike targeting Israel.
Based on Iran’s constitutional framework, an interim leadership council comprising the president, judiciary chief, and a Guardian Council jurist will administer governance pending the Assembly of Experts’ selection of a permanent successor.
Currently, BTC trades near $67,350, with oil and equity futures markets scheduled to open later Sunday, which market analysts identify as the next critical indicator determining whether the cryptocurrency recovery maintains momentum.
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