TLDR
- Bitcoin dropped nearly 5% to approximately $63,000 in response to U.S.-Israeli military strikes targeting Iran
- The digital currency hit its lowest price point since February 5, when BTC briefly dipped below $60,000
- Israeli Defense Minister Israel Katz declared a nationwide emergency across Israel
- Bitcoin’s 24/7 trading availability makes it a primary vehicle for immediate risk-off sentiment when conventional markets are closed
- Investors liquidated bitcoin positions as it was among the few highly liquid major assets available for trading during the weekend
Bitcoin, the largest cryptocurrency by market capitalization, suffered a sharp downturn on Saturday, February 28, 2026, dropping toward $63,000 after military strikes conducted by U.S. and Israeli forces targeted Iranian positions.
The flagship cryptocurrency lost close to 5% of its market value in a matter of minutes, delivering a substantial shock to digital asset markets.
This dramatic decline brought bitcoin to price levels unseen since February 5, when the cryptocurrency briefly slipped under the critical $60,000 mark.
Israel Katz, serving as Israeli Defense Minister, declared a sweeping state of emergency spanning the entire country immediately after the military operations began.
A U.S. official confirmed American participation in the joint attacks, according to reporting by The Wall Street Journal.
Israeli authorities described the operation as a “preemptive strike,” based on statements from the country’s defense establishment, as reported by Reuters.
Why Bitcoin Sold Off First
In contrast to conventional stock and bond markets that shut down on weekends, Bitcoin trades around the clock without pause, operating 24 hours each day, every day of the week.
This uninterrupted trading capability makes it one of the limited highly liquid, major assets that traders can sell during periods of elevated risk when traditional financial markets remain shuttered.
This pattern is not unprecedented. Bitcoin commonly experiences swift declines during geopolitical turmoil, typically recovering once standard markets open for business.
“Bitcoin just dropped off a cliff,” remarked one market commentator on X, adding a prediction that “Monday will be a bloodbath in the market.”
Geopolitical Context
The strikes follow weeks of increasing U.S. military deployment and stalled nuclear negotiations with Iran.
Investors and analysts had been evaluating how potential Iranian confrontation might affect bitcoin, gold prices, and stock markets.
The military engagement raises the specter of broader regional conflict in one of the world’s most strategically vital areas.
Recently, bitcoin’s performance has decoupled from gold, raising questions about its standing as a defensive asset or genuine “digital gold” alternative.
As of Saturday morning, bitcoin traded around $63,000, with market participants bracing for further turbulence when traditional markets reopen Monday.
