Bitcoin nears $63,000 as U.S. and Israel launch strikes on Iran
TL;DR
Bitcoin dropped below $64,000, nearing $63,000 after U.S. and Israeli strikes on Iran, falling about 3% to its lowest since early February. The sell-off highlights bitcoin's role as a liquid asset for traders during geopolitical crises when traditional markets are closed.
Key Takeaways
- •Bitcoin fell roughly 3% to near $63,000 after U.S. and Israeli military strikes on Iran, hitting its lowest level since early February.
- •The weekend sell-off underscores bitcoin's function as one of the few large, liquid assets available when geopolitical risks spike while stock and bond markets are closed.
- •The attack heightens risks of broader regional conflict in a key economic area, following weeks of U.S. military buildup and stalled nuclear negotiations.
- •Altcoins like Solana and ether fell more sharply than bitcoin (over 6%), erasing recent outperformance despite strong inflows into U.S. spot bitcoin ETFs.
- •Macro headwinds including hot U.S. producer price data and shrinking USDT reserves have intensified downside risks as bitcoin remains in a $60,000-$70,000 range.
What to know:
- Bitcoin fell below $64,000 in Saturday trading, dropping about 3 percent and hitting its lowest level since early February after U.S. and Israeli launched strikes on Iran.
- The weekend sell-off underscores bitcoin's role as one of the few large, liquid assets available to traders when geopolitical risks spike while stock and bond markets are closed.
- The attack on Iran heightens the risk of a broader regional conflict in a key economic area, following weeks of U.S. military buildup and stalled nuclear negotiations with Tehran.
- Bitcoin fell below $64,000 in Saturday trading, dropping about 3 percent and hitting its lowest level since early February after U.S. and Israeli launched strikes on Iran.
- The weekend sell-off underscores bitcoin's role as one of the few large, liquid assets available to traders when geopolitical risks spike while stock and bond markets are closed.
- The attack on Iran heightens the risk of a broader regional conflict in a key economic area, following weeks of U.S. military buildup and stalled nuclear negotiations with Tehran.
Bitcoin neared $63,000 in Saturday trading after the U.S. and Israel launched military strikes on Iran, pushing the largest cryptocurrency down roughly 3% in a matter of hours and extending what had already been a difficult weekend for risk assets.
The move brings bitcoin to its lowest level since the Feb. 5 crash, when the token briefly dipped below $60,000.
Israeli Defense Minister Israel Katz declared an immediate state of emergency across all areas of Israel. A U.S. official confirmed American participation in the strikes, The Wall Street Journal reported.
The sell-off follows a well-established pattern. Bitcoin trades 24 hours a day, 7 days a week, while equity and bond markets are closed on weekends.
That makes it one of the only large, liquid assets available for traders to sell when geopolitical risk spikes outside of traditional market hours.
The result is that bitcoin often acts as a pressure valve for broader risk-off sentiment during weekend events, absorbing selling that would otherwise spread across equities, commodities, and currencies if those markets were open.
The attack risks a wider regional conflict in one of the most economically sensitive parts of the world, following a month-long U.S. military buildup and failed negotiations over Iran's nuclear program.
- Bitcoin is on pace for a fifth straight monthly loss, its worst such streak since 2018.
- Analysts say the slump reflects a broader "structural regime shift" in how markets price risk, as bitcoin underperforms resilient U.S. stocks, lags gold and sees volatile correlations with equities.
- Some market watchers warn the current 52% drawdown could deepen toward past bear-market declines, while others argue deeply negative sentiment and ongoing accumulation may set the stage for a sharp reversal if key resistance levels are reclaimed.
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