Bitcoin Rebounds After Middle East Shock, Erasing $5K Drop in a Day
Bitcoin staged a sharp comeback after geopolitical turmoil in the Middle East briefly sent markets into a tailspin.
The world’s largest cryptocurrency fell to nearly $63,000 on Saturday as reports spread of joint US-Israeli air strikes on Iran — along with claims that Iran’s Supreme Leader, Ayatollah Ali Khamenei, had been killed. But the sell-off didn’t last long.
Within 24 hours, Bitcoin had clawed back roughly $5,000, rising to around $67,000–$68,000 as traders reassessed the situation.
Key Takeaways
Bitcoin dropped to about $63K following the strikes but rebounded roughly $5K within a day.
Around 157,000 leveraged traders were liquidated, totaling about $657 million in wiped-out positions.
Markets are now watching closely to see whether the conflict escalates or stabilizes — a key factor for Bitcoin’s next move.
Volatility Sparks $657 Million in Liquidations
By early Sunday, Bitcoin had climbed to roughly $68,200, according to TradingView data, recovering nearly all of its losses. At the time of writing, it’s hovering near $67,350 — close to where it traded before the escalation.
But the sharp swing triggered heavy activity in the derivatives market.
Data from CoinGlass shows that about 157,000 traders were liquidated in the past 24 hours, with total liquidations reaching approximately $657 million. Long and short positions were wiped out in nearly equal measure as volatility surged.
Conflict Escalates, Markets React
Iran’s Supreme National Security Council said Khamenei was killed in strikes targeting leadership and military infrastructure. Senior officials, including Islamic Revolutionary Guard Corps commander Mohammad Pakpour and Defense Council secretary Ali Shamkhani, were also reportedly killed.
Tehran has since launched counterattacks across Israel and several Gulf states hosting US assets, with explosions reported in multiple cities and airports suspending operations.
The escalation marks one of the most dramatic moments in Iran since the 1979 revolution and has triggered an urgent leadership succession process. Governments and investors worldwide are now watching closely to see whether the situation spirals or cools.
Initially, crypto markets reacted like traditional risk assets, dropping amid the uncertainty. But the swift rebound suggests traders may be betting that the conflict remains contained rather than escalating into a prolonged regional war.
Market commentator Ash Crypto said the rally likely reflects expectations that tensions won’t spiral further. If calm holds before traditional markets reopen, Bitcoin could potentially maintain its recovery.
A Tough Month for Bitcoin
Despite the quick bounce, Bitcoin remains stuck in a sideways range that has lasted about three weeks.
February was particularly rough. It closed as Bitcoin’s third-worst February on record, with the price falling just under 15%. Only 2014 and 2025 saw steeper February declines, according to CoinGlass data.
Zooming out, the broader trend remains weak. Bitcoin is down roughly 23% since the start of the year, putting it on track for its worst first-quarter performance since 2018.
For now, traders seem less focused on chart patterns and more on headlines. Military developments, diplomatic signals or retaliation could continue driving sharp short-term price swings.
Jimmy Wales Questions Bitcoin’s Long-Term Future
Amid the volatility, Wikipedia co-founder Jimmy Wales has added fuel to the long-running debate over Bitcoin’s future.
Wales recently suggested that Bitcoin could eventually fall below $10,000. While he believes the network may continue operating for decades, he questioned whether it will ever fully become global money or a reliable store of value.
He also challenged the assumption that institutional adoption or ETF inflows guarantee long-term stability. Without clear real-world utility, he argued, Bitcoin could drift toward what he described as “hobbyist levels” by 2050.
His remarks reignite a familiar debate: Is Bitcoin digital gold, a payment network, or simply a speculative asset?
