The cryptocurrency market has been thrown into chaos following a sudden escalation of geopolitical tensions in the Middle East. On February 28, 2026, the US and Israel launched joint strikes on targets in Iran, sparking widespread fear among investors.
As traditional markets remained closed for the weekend, the 24/7 cryptocurrency market bore the brunt of the initial 'risk-off' sentiment. The total crypto market cap shed approximately $128 billion in value within a 24-hour window, with Bitcoin leading the decline to a local low around $63,038.
Historically, Bitcoin has been touted as a safe-haven asset, but recent price action suggests it behaves more like a high-risk growth stock in times of conflict. Analysts warn that if the situation worsens and neighboring countries become involved or the Strait of Hormuz is disrupted, Bitcoin could test the $60,000 support level.