Bitcoin's price dropped significantly on Saturday morning after the US and Israel launched airstrikes on Iran, sparking concerns of a broader regional conflict. However, as the situation unfolded, fears of escalation eased, and the cryptocurrency market began to recover.
Nearly $250 million in Bitcoin derivatives positions were liquidated, including around $124.88 million in long bets. Despite this, the price rebounded from an intraday low of $63,176 to above $67,000 by 3:45 p.m. Eastern time.
The exact catalyst for the recovery is unclear, but restrained escalation and steady global liquidity conditions may have contributed to the bounce-back. Some market observers suggest that the Iranian Supreme Leader's potential passing could also have a significant impact on Bitcoin's price in the coming days.