Bitcoin fell towards $63,000 after Israel launched attacks on Iran and President Trump announced major US combat operations.
Within minutes, the crypto markets reacted sharply, wiping out billions in value.
As geopolitical tensions rose, traders rushed to reduce risk, leading to rapid liquidations on major digital asset exchanges worldwide.
Bitcoin falls as conflict in the Middle East escalates
Bitcoin plummeted after Israel confirmed a pre-emptive strike on Iran, roiling global financial markets. The news spread quickly and caused a widespread sell-off in crypto assets.
Matthew Dixon, a veteran financial trader, posted on X that Israel had carried out an attack, citing the Secretary of Defense.
Noting that explosions were heard in Tehran, he said the development led to a sharp sell-off BTC and Crypto.
Iran latest:
Israel carried out an attack, defense minister says, as explosions were heard in Tehran
The result is a sharp sell-off #BTC & #Crypto pic.twitter.com/X4lyMQ11Rmā Matthew Dixon ā experienced financial trader (@mdtrade) February 28, 2026
The top digital asset fell nearly 4% from about $65,500 to $63,000 due to the sudden flare-up of conflict in the Middle East.
At the time of writing, the stock was trading around $63,600, down 6% in the past 24 hours.
As tensions rose, traders reduced exposure to risky assets and shifted to defensive positions.
As a result, volatility rose on crypto platforms as investors kept an eye on updates from Israel and the United States.
Within one hour, $75 billion has disappeared from the crypto market
After the initial decline, liquidations accelerated in the derivatives markets. According to stock market data, more than $100 million in long positions were liquidated within 15 minutes.
Within an hour, more than $75 billion of the entire crypto market value was wiped clean. Leveraged traders faced automatic sell orders as prices fell rapidly. As a result, downward pressure increased.
šMARKET SLUMP: MORE THAN $75 BILLION ERASED FROM CRYPTO IN 60 MINUTES AS US-ISRAEL ATTACKS IRAN$BTC has dropped to $63.6K $ETH has dropped to $1.8K. pic.twitter.com/RsTPKRT9bo
ā BSCN (@BSCNews) February 28, 2026
High leverage amplified the sell-off across platforms. When stop-loss levels were activated, additional positions were forced to close. Therefore, the market decline deepened in a short time.
Meanwhile, trading volumes rose as investors followed developments.
Both retail and institutional traders have adjusted their positions to manage the risks. Volatility remained high throughout the session.
Trump announces āmajor combat operationsā against Iran
President Donald Trump later announced that the United States had begun āmajor combat operationsā against Iran. He said the goal was to destroy Iran’s missile capabilities.
āWe are going to destroy Iran’s missiles,ā Trump declared. He acknowledged that American lives could be lost and casualties could occur.
However, he said the action was necessary to ensure that Iran does not acquire a nuclear weapon.
Trump described Iran’s leadership as “very bad, tough, terrible people” who threaten the United States and its allies.
He said Iran supports terrorism and builds dangerous weapons, including missiles and nuclear technology. According to Trump, Iran poses an immediate threat.
pic.twitter.com/BZuJDudLej
ā Donald J. Trump (@realDonaldTrump) February 28, 2026
He added that the decision followed failed talks and other diplomatic efforts. āWe had to do this after talks had been held and other ways didn’t work,ā he said. He also noted that the move was intended to protect Americans and U.S. allies, while indicating that Israel played a role in the response.
Moreover, Trump called on the Iranian people to overthrow his government once the US airstrikes end. His comments further increased global attention to the unfolding conflict.
Related literature: What happens to Bitcoin if the Iranian hashrate disappears overnight?
Israel prepares for retaliation as markets remain volatile
Earlier, Israel’s Defense Minister confirmed that Israeli forces carried out pre-emptive strikes. The Israeli military warned that retaliatory missile strikes from Iran were possible.
Authorities have suspended schools, workplaces and public gatherings across the country. Essential services continue their activities under emergency measures. Security forces remained on high alert.
As a result of these developments, financial markets across all asset classes responded. Investors followed oil prices, stocks and safe-haven assets in addition to cryptocurrencies.
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