On the morning of February 28, 2026, the cryptocurrency market experienced a significant crash: the price of Bitcoin dropped below the $64,000 level. This decline occurred against the backdrop of reports of Israeli airstrikes on the Iranian capital, Tehran, which led to an escalation of the geopolitical situation in the Middle East.
This is reported by Finway
Market Crash and Mass Liquidations
At the time of writing this news, Bitcoin is trading slightly below $64,000. This correction has affected the entire cryptocurrency market — in some cases, declines exceeded 8%. A significant volume of liquidations has been recorded in the futures markets: over the past day, the total amount of forced position closures reached over $445 million, and the number of liquidated traders exceeded 135,000. The primary impact was felt by those assets that were in long positions, particularly Bitcoin and Ethereum.
Market Reaction and Fear and Greed Index
The Fear and Greed Index in the cryptocurrency market has decreased by two points compared to the previous day, indicating a predominance of selling and a general decline in confidence regarding the future value of digital assets. Among the reasons for the drop, market participants highlight the escalation of the conflict between Israel and Iran, as Bitcoin traditionally shows high volatility during periods of geopolitical instability. Similar fluctuations have been observed during previous escalations in the region.
“The community links this drop to the Israeli strikes on Tehran, the capital of Iran. Bitcoin, as a high-risk asset, is dependent on the macroeconomic backdrop. A similar scenario has been observed before.”
According to CNN, Israel has declared a state of emergency. Meanwhile, some market participants do not rule out further declines in the price of Bitcoin — specifically, a possible test of the $40,000 level if the tense situation persists.