TLDR
- Bitcoin plunged to $63,000 following U.S. and Israeli airstrikes that killed Iran’s Supreme Leader Ayatollah Ali Khamenei
- BTC surged back to $68,000 within hours as traders viewed the development as possibly de-escalating regional tensions
- The volatile 24-hour period resulted in 157,000 liquidated positions totaling $657 million
- February ended as Bitcoin’s third-weakest performance for the month, declining nearly 15%
- Ethereum and XRP mirrored Bitcoin’s recovery, with ETH approaching $2,000 and XRP reaching $1.40
Bitcoin experienced a dramatic decline to $63,000 on Saturday following coordinated airstrikes by the United States and Israel on Iran that resulted in the death of Supreme Leader Ayatollah Ali Khamenei.
The selloff happened rapidly. BTC lost several thousand dollars in value as market participants responded to the unexpected geopolitical development.
Iranian state media subsequently confirmed Khamenei’s death. According to Iran’s Supreme National Security Council, he died at his office location.
U.S. President Donald Trump verified the information 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 its recovery phase. BTC reached $68,200 on Coinbase by early Sunday morning.
This represented a $5,000 price movement in less than 24 hours, translating to approximately an $80 billion shift in total market capitalization.
Liquidations and Market Reaction
The turbulent 24-hour window saw approximately 157,000 traders liquidated, with aggregate liquidations hitting $657 million, distributed almost equally between long and short leveraged positions, per CoinGlass data.
Analyst Ash Crypto observed that traders perceived Khamenei’s death as potentially signaling an end to U.S.-Iran hostilities, fueling the subsequent price recovery.
Ethereum moved back toward $2,000, while XRP rebounded to approximately $1.40 as the wider cryptocurrency market tracked Bitcoin’s upward trajectory.
Bitcoin’s recovery restored prices to Friday’s levels, though BTC continues trading within a three-week consolidation range.
Bitcoin’s Worst February Performance in Years
The weekend rebound aside, Bitcoin concluded February with a nearly 15% decline, marking the third-weakest February in its trading history.
This marked only the fourth instance since 2013 that Bitcoin finished February with negative returns. The asset’s weakest February occurred in 2014 with a 31% decline.
BTC currently tracks toward its poorest first-quarter performance since 2018, having declined approximately 23% from January 1.
Iran’s Revolutionary Guards have executed retaliatory strikes against nations hosting U.S. military installations, with at least one fatality reported from a strike targeting Israel.
According to Iran’s constitutional framework, an interim leadership council comprising the president, judiciary head, and a Guardian Council jurist will administer governance until the Assembly of Experts selects a successor.
Currently, BTC trades around $67,350, with oil and equity futures markets scheduled to open later Sunday, providing what analysts describe as the next critical indicator for the sustainability of crypto’s recovery momentum.
