Following an initial $128 billion crypto market plunge triggered by US and Israeli strikes on Iran, Bitcoin has rebounded toward $67,000 amid Iran's confirmation that the attacks killed Supreme Leader Ayatollah Ali Khamenei. Ethereum surged over 6% to near $2,000 as markets stabilized, despite oil supply fears and inflation concerns.
The cryptocurrency market saw sharp swings over the weekend after joint US-Israeli operations targeted Iran on Saturday. Bitcoin initially fell to $63,000—wiping out $128 billion in market value with cascading liquidations—but recovered to near $67,000, even touching $68,000 after news of Khamenei's death and other officials. Ethereum climbed more than 6.5% in 24 hours to just under $2,000, up from a low of $1,841.
Hayden Hughes of Tokenize Capital noted to Bloomberg that true price discovery awaits Monday's reopening of US equity markets and Bitcoin ETFs, warning of drops below $63,000 if ETF sellers react to risks like Gulf retaliation or Strait of Hormuz closure.
Iran counterattacked targets in Israel and elsewhere, heightening tensions around the Strait of Hormuz (20% of global oil). War-risk insurance premiums rose over 50%, and analysts warn prolonged disruption could push oil to $120–$130/barrel, stoking inflation, delaying Fed rate cuts, and tightening liquidity for crypto.
Optimism persists: commentator Ash Crypto highlighted the recovery on X, while 10x Research's Markus Thielen downplayed long-term economic fallout. South Korea's Financial Services Commission held an emergency March 1 meeting, urging vigilance on prolonged conflict impacts. Fears also mount over disruptions to Iran's Bitcoin mining, potentially causing hashrate shocks. President Trump dismissed Hormuz concerns. Markets eye Monday for direction.
