Bitcoin falls below $64,000! The US and Israel carry out airstrikes on Iran, Middle East conflict escalates, impacting the crypto market
On February 28, after the US and Israel launched airstrikes against Iran, global risk aversion surged. Bitcoin price fell below the $64,000 level, dropping about 3% within hours, hitting a recent low since the flash crash on February 5. Earlier in early February, Bitcoin briefly fell below $60,000, triggering significant volatility in crypto assets.
Israel’s Defense Minister Israel Katz announced a nationwide state of emergency, and a US official confirmed US involvement in the military operation. The rapidly escalating Middle East situation put additional pressure on already stressed risk assets during the weekend trading session. Since stock and bond markets are closed on weekends, Bitcoin, as a highly liquid asset traded 24/7, became a quick hedge against geopolitical risks.
From a market structure perspective, Bitcoin often leads in reflecting changes in risk appetite during major unexpected events. When traditional financial markets cannot respond immediately, some institutions and quantitative funds adjust their risk exposure through crypto assets, amplifying short-term volatility. In the context of the recent escalation of the Middle East conflict, Bitcoin again demonstrated “front-running” pricing characteristics.
It is noteworthy that the US has previously conducted military deployments in the region for several weeks, and negotiations over Iran’s nuclear program recently broke down. If the situation worsens, there could be chain reactions in oil prices, the US dollar index, and global stock index futures, potentially further increasing volatility in the crypto market.
On the technical side, $64,000 remains a key support level. If this level is broken, the market may test the psychological $60,000 mark again. In the short term, Bitcoin’s price movement will heavily depend on the developments in the Middle East, the flow of global risk-averse capital, and macro policy expectations. For investors monitoring Bitcoin’s latest trends, the impact of geopolitical conflicts on the crypto market, and weekend trading mechanisms, risk management and position control are especially important at this stage.
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