Crypto markets crash as Israel strikes Iran
6.7 Markets Crypto markets plunged after reports of an Israeli strike on Iran, with Bitcoin below $64,000 and over $500M in liquidations. The sell-off was driven by heightened geopolitical tensions.
On February 28, 2026, the crypto market faced a sharp downturn after reports emerged of a preemptive Israeli strike on Iran, with some sources suggesting US coordination. This escalation in Middle East tensions triggered immediate risk-off sentiment among investors. Bitcoin plunged below $64,000, while Ethereum dropped near $1,926. Major altcoins were also affected, with Solana and XRP falling by 4% and 2.51%, respectively. The total crypto market capitalization declined by 2.63% to $2.17 trillion within an hour. Liquidations surged, wiping out up to $502 million in 24 hours and impacting over 151,000 traders. The sell-off was marked by high trading volumes and cascading forced liquidations, as investors rapidly exited volatile assets. The reaction echoed previous market responses to geopolitical shocks, such as the Russia-Ukraine conflict.
