And when Israel announced a preemptive strike against Iran, backed by the United States, global markets were rattled. The unexpected military action alarmed analysts and left residents afraid of a wider conflict in the Middle East. One of the earliest contexts that shock was experienced was the cryptocurrency market, for which Bitcoin plummeted toward $63,000. Take a closer look at what happened and why it matters.
Israel declared military action against Iran on February 28, 2026; the attack targeted the Iranian capital, Tehran. Explosions were reported, Israel declared a nationwide state of emergency. The United States confirmed its participation, saying the strike was necessary to handle “imminent threats” from Iran. This marked a deep-seated escalation of tensions that had been building for weeks.
Bitcoin, the world’s largest cryptocurrency, fell almost 7% in a single day, coming in just shy of the $63,000 mark. Other digital coins, too, lost ground, Ether fell about 5%. Markets witnessed over $100 million in long positions liquidated within minutes after the news circulated. That reflects how sensitive crypto markets are to geopolitical happenings, where fear and lack of clarity leads to abrupt sell-offs.
The shock was not confined to cryptocurrencies. Oil prices surged as concerns over supply disruptions from the Middle East rattled investors. Gold increased as people fled to safe-haven assets. Markets in Asia and Europe were a little lower at the open, echoing worldwide concern about the prospect of prolonged fighting. War fears plus financial volatility made for a tight-knit environment across various markets.
The strike has been widely responded to around the globe. Supporters claim that Israel was trying to protect itself against Iranian threats. Critics say the step could spark a larger war in the region. For investors, the largest unknown is uncertainty. Markets hate instability, and now the Middle East conflict has become the leading risk factor for global finance.
The drop in Bitcoin shows how digital assets are linked closely to world events. Cryptocurrencies, even when considered completely independent from the traditional market, still tend to be sensitive to sudden shocks. As Israel and Iran stand face-to-face, investors will be on the lookout for signs of escalation or resolution. At the moment, the only certainty is uncertainty and markets are reacting strongly to it.
