TLDR
- Bitcoin plunged to $63,000 following U.S. and Israeli airstrikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei
- BTC rebounded to $68,000 within hours as traders viewed the development as potentially de-escalating tensions
- Approximately 157,000 traders faced liquidation over 24 hours, totaling $657 million in liquidations
- Bitcoin finished its third-worst February on record, declining nearly 15% for the month
- XRP and Ethereum also bounced back, with ETH holding near $2,000 and XRP around $1.40
Bitcoin tumbled sharply to $63,000 on Saturday after the United States and Israel conducted airstrikes against Iran, resulting in the death of Supreme Leader Ayatollah Ali Khamenei.
The decline was rapid and severe. Within hours, BTC had dropped thousands of dollars as investors responded to the abrupt geopolitical jolt.
Iranian state media subsequently confirmed Khamenei’s death. Iran’s Supreme National Security Council reported he was killed in his office.
BREAKING: President Trump says Iran’s Supreme Leader Khamenei is dead.
— The Kobeissi Letter (@KobeissiLetter)
U.S. President Donald Trump verified the report on Truth Social, describing Khamenei as “one of the most evil people in history.”
The commander of Iran’s Revolutionary Guard Corps and the secretary of Iran’s Defense Council also died in the attacks.
Following confirmation of the news, Bitcoin started to rebound. By early Sunday morning, BTC had risen back to $68,200 on Coinbase.
This represents a $5,000 fluctuation in less than 24 hours, translating to approximately an $80 billion shift in market capitalization.
Liquidations and Market Reaction
Roughly 157,000 traders were liquidated during the 24-hour span, with aggregate liquidations hitting $657 million, divided about equally between leveraged long and short positions, per CoinGlass data.
Crazy moves on Bitcoin today.
Bitcoin dumped $2,800 from its daily high after the US strike on Iran, wiping $58 billion from its market cap.
Then BTC pumped $3,900 to $67k by day’s close, adding $78 billion back to its market cap.
$570 million liquidated in the last 24 hours.…
— Ash Crypto (@AshCrypto)
Analyst Ash Crypto observed that markets perceived Khamenei’s death as potentially signaling an end to the U.S.-Iran conflict, fueling the recovery rally.
Ethereum advanced back toward $2,000, and XRP regained ground to approximately $1.40 as the wider crypto market tracked Bitcoin’s movement.
Bitcoin’s rebound returns it to levels observed on Friday, though it stays within a three-week sideways trading range.
Bitcoin’s Worst February Performance in Years
Notwithstanding the weekend recovery, Bitcoin ended February down almost 15%, marking its third-worst February performance in the cryptocurrency’s history.
BREAKING: Bitcoin officially turns positive on the day, rising above $66,000.
Bitcoin is now trading ~$1,000 HIGHER than where it was when US and Israeli strikes launched on Iran last night.
— The Kobeissi Letter (@KobeissiLetter)
It marked just the fourth instance since 2013 that February finished negative. The worst February occurred in 2014, when Bitcoin plunged 31%.
BTC is also heading for its poorest first-quarter showing since 2018, having shed about 23% since January 1.
Iran’s Revolutionary Guards have initiated retaliatory attacks on nations hosting U.S. military installations, with at least one fatality reported after a strike on Israel.
Under Iran’s constitution, an interim leadership council comprising the president, judiciary chief, and a Guardian Council member will rule until the Assembly of Experts selects a successor.
At publication time, BTC is changing hands around $67,350, with oil and stock futures markets scheduled to open later Sunday, which experts indicate will provide the next key indication of whether the crypto rally sustains.
