Bitcoin (BTC) faced a sharp decline on February 28, falling to $62,938 after the US and Israel announced a military operation targeting Iran. BTC lost 4.2% of its value, while Ether (ETH) dropped 5% to $1,783. The sell-off reflected immediate investor reactions to sudden geopolitical tensions in the Middle East.
Approximately $128 billion in total cryptocurrency market capitalization was erased within minutes, according to CoinGecko data. A Crypto Analyst, Gustavo Maldonado, reported that the sharp decline of Bitcoin and other cryptocurrencies resulted from geopolitical risks and uncertainty regarding stability in the Middle East region.
Trump Confirms US Strikes Target Iran
The United States’ former President, Donald Trump, also spoke about the operation in an eight-minute video on Truth Social. Trump confirmed the US’s involvement in the operation and called the strikes an effort to target Iran’s nuclear facilities. Trump also called on the Iranian people to “take over your government,” which may be their only chance for a generational change.
The Kobeissi Letter highlighted that this marked the second US-Israel-Iran confrontation in eight months. The last conflict in 2025 resulted in extreme volatility in the crypto market. Analysts pointed out that geopolitical tensions, especially between powerful nations, usually result in extreme liquidation.
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Bitcoin Faces $250 Million Liquidations
As per CoinGlass data, the cryptocurrency market saw an increase in liquidations worth more than $250 million in the last four hours. As the US stock market futures are yet to open, the cryptocurrencies are facing the immediate effect of the geopolitical news. Analysts are predicting further volatility in the market until further news emerges on the conflict.
Analysts pointed out that the crypto market is highly sensitive to geopolitical news. Investors are keeping a close eye on the price movement of the popular cryptocurrencies like BTC and ETH. As the conflict is between powerful nations, the crypto market may experience extreme volatility in the days to come.
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