TLDR
- BTC plunged to $63,000 following U.S.-Israeli airstrikes that killed Iran’s Supreme Leader Ayatollah Ali Khamenei
- The cryptocurrency bounced back to $68,000 in mere hours as traders assessed the geopolitical implications
- Approximately 157,000 traders faced liquidation over 24 hours, totaling $657 million in forced position closures
- February marked Bitcoin’s third-worst performance for the month historically, declining nearly 15%
- Other major cryptocurrencies including Ethereum and XRP also rebounded, with ETH approaching $2,000 and XRP hovering near $1.40
Bitcoin experienced a dramatic plunge to $63,000 on Saturday following coordinated airstrikes by the United States and Israel on Iranian targets that resulted in the death of Supreme Leader Ayatollah Ali Khamenei.
The cryptocurrency’s decline was both rapid and severe. In a matter of hours, thousands of dollars in value evaporated as market participants responded to the unexpected geopolitical development.
Confirmation of Khamenei’s death came from Iranian state media outlets. According to Iran’s Supreme National Security Council, he was killed while at his office.
President Donald Trump acknowledged the development on Truth Social, describing Khamenei as “one of the most evil people in history.”
The strikes also claimed the lives of Iran’s Revolutionary Guard Corps commander and the secretary of Iran’s Defense Council.
Following official confirmation, Bitcoin initiated a robust recovery. By the early hours of Sunday, BTC had surged back to $68,200 on the Coinbase exchange.
This represented a remarkable $5,000 price swing within a single day, translating to approximately an $80 billion shift in total market capitalization.
Liquidations and Market Reaction
The volatile period saw approximately 157,000 traders liquidated during the 24-hour window, with aggregate liquidations hitting $657 million, distributed nearly equally between long and short positions with leverage, per CoinGlass data.
Market analyst Ash Crypto observed that traders viewed Khamenei’s death as potentially signaling a de-escalation in U.S.-Iran tensions, which fueled the subsequent price recovery.
Ethereum rallied back toward the $2,000 threshold, while XRP rebounded to approximately $1.40 as the broader cryptocurrency market tracked Bitcoin’s trajectory.
Bitcoin’s rebound restored it to Friday’s price levels, though it continues trading within a three-week consolidation range.
Bitcoin’s Worst February Performance in Years
Notwithstanding the weekend rally, Bitcoin concluded February with a decline of nearly 15%, ranking as its third-worst February performance on record.
This marked only the fourth instance since 2013 that Bitcoin finished February with negative returns. The worst February occurred in 2014, when the cryptocurrency plummeted 31%.
BTC is currently tracking toward its weakest first-quarter performance since 2018, having shed approximately 23% since the beginning of January.
Iran’s Revolutionary Guards have initiated retaliatory strikes targeting nations that host U.S. military installations, with at least one fatality reported following a strike on Israeli territory.
According to Iran’s constitutional framework, an interim leadership council consisting of the president, judiciary chief, and a Guardian Council jurist will oversee governance until the Assembly of Experts selects a permanent successor.
As of this writing, BTC is changing hands around $67,350, with oil and equity futures markets scheduled to open later Sunday, which market analysts indicate will provide crucial insight into whether the cryptocurrency recovery can sustain momentum.
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