Bitcoin Crashes to $63K as US and Israel Strike Iran, War Begins
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Coin Newsweek – February 28, 2026 – Israel and the United States carried out a joint strike on Iran early Saturday, marking a major escalation in regional tensions. Bitcoin reacted sharply to the news, dropping straight to $63,000 and extending daily losses to nearly 7% as investors fled risk assets amid growing fears of a wider Middle East conflict.
Faytuks Network @FaytuksNetwork · 28 Feb
Explosions seen across Tehran pic.twitter.com/opPdIo5vrw
US Iran War Officially Starts
Israeli Defense Minister Israel Katz described the operation as a “preemptive strike.” The Israeli government declared a nationwide state of emergency, warning of possible Iranian retaliation using drones and ballistic missiles. According to CNN, the strike was coordinated between Washington and Jerusalem, with officials stating the action aimed to counter what they described as an immediate threat.
The move follows weeks of rising tensions between the US and Iran. Washington yesterday designated Iran as a State Sponsor of Wrongful Detention, accusing Tehran of holding American citizens for political leverage. At the same time, the US increased its military presence in Israel, deploying advanced fighter jets and additional assets across the region.
Bitcoin Crashes and Erases Weekly Gains
Bitcoin fell sharply following news of the strike. The cryptocurrency dropped more than 6% in 24 hours, sliding to around $63,300. The decline erased recent recovery attempts and extended broader weakness over the past month. Traders appear to be cutting risk exposure amid fears of a wider regional conflict.
If Iran retaliates directly against Israeli or US assets, the situation could escalate quickly. Energy markets are also on alert, given Iran’s strategic position in global oil routes.
Market Impact and Investor Sentiment
The broader cryptocurrency market followed Bitcoin lower, with Ethereum dropping below $2,500 and Solana falling 8% on the day. Safe-haven assets including gold saw modest gains as investors sought protection from geopolitical uncertainty.
“This is exactly the type of black swan event that crypto markets hate,” said one trader. “When real war breaks out, liquidity dries up and everyone runs to the exits.”
Regional Fallout and Next Steps
Details on the specific targets have not yet been fully disclosed. Iranian state media reported explosions in several cities including Tehran, with initial reports suggesting air defense systems were activated near nuclear facilities and military installations.
The United Nations Security Council has called an emergency session to address the escalating crisis. European leaders urged restraint from all parties, warning that a full-scale regional war would have catastrophic consequences for global stability and energy security.
Sources: CNN, Reuters, IDF Spokesperson, CoinGecko
Disclaimer: This content is for market information purposes only and does not constitute investment advice. Cryptocurrency investments involve high risk.
