Israel launches strike on Iran; Bitcoin plunges $1,000, now trading at $64,400, down over 2% intraday.

Israel launches strike on Iran; Bitcoin plunges $1,000, now trading at $64,400, down over 2% intraday.

Bitcoin Falls Below $64,400 Amid Escalating U.S.-Iran Geopolitical Tensions

Bitcoin (BTC) dropped over 2% intraday on February 28, 2026, trading at $64,400 following renewed U.S.-Iran tensions sparked by Israeli military action in the region. The cryptocurrency's decline reflects heightened risk-off sentiment, with analysts warning that geopolitical instability could deepen the ongoing bear market.

The sell-off follows a reported Israeli strike on Iranian nuclear infrastructure, escalating regional tensions that had already been amplified by U.S. military posturing. Earlier in February, President Donald Trump issued a 10-day ultimatum to Iran for nuclear negotiations, with threats of military action if talks failed according to reports. The U.S. has since deployed significant military assets, including two aircraft carriers and 12 warships, to the region as reported.

Bitcoin's reaction mirrors historical patterns during geopolitical crises. In June 2025, coordinated U.S.-Israel strikes on Iran caused Bitcoin to fall from $104,000 to $100,945 within hours before rebounding according to analysis. However, analysts note that the current market environment—already in a bear phase—makes cryptocurrencies more vulnerable to further declines. "Geopolitical headwinds will exacerbate selling pressure on Bitcoin and Ethereum," said Julio Moreno of CryptoQuant, citing the $19 billion liquidation event in October 2025 that pushed Bitcoin from $100,000 to $67,000 according to data.

The broader market is also shifting toward traditional safe-haven assets. Gold prices rose to $5,000 per ounce, while U.S. Treasury yields climbed as investors rotated capital away from risk assets as market data shows. Bitcoin's role as a "digital gold" hedge has been questioned, as its price has underperformed during recent conflicts. For example, during the 2025 strikes, Bitcoin briefly rebounded after Trump signaled a pause in attacks, but this time, weak hands have already exited the market according to analysis.

Experts remain divided on Bitcoin's near-term trajectory. Some predict a potential drop to $53,000 if tensions persist, while others argue that a stabilization above $60,000 could signal resilience according to forecasts. With Trump's Iran deadline looming and U.S. military readiness confirmed, the next 48 hours will be critical for both geopolitical stability and crypto markets as analysts note.

As of February 28, Bitcoin's price remains volatile, with key support levels at $60,000 and $50,000 under scrutiny. Investors are advised to monitor diplomatic developments and macroeconomic indicators for further clarity.

(https://finance.yahoo.com/news/us-iran-war-could-mean-162006557.html): Yahoo Finance, (https://www.ccn.com/analysis/crypto/trumps-iran-ultimatum-bitcoin-btc-price-crashing-50k/): CCN, (https://finance.yahoo.com/news/trump-takeover-cuba-iran-war-200319263.html): Yahoo Finance