Bitcoin fell sharply to $63,000 on Saturday after the United States and Israel launched airstrikes on Iran, killing Supreme Leader Ayatollah Ali Khamenei.
The drop was fast and steep. Within hours, BTC had shed thousands of dollars as traders reacted to the sudden geopolitical shock.
Iranian state media later confirmed Khamenei’s death. Iran’s Supreme National Security Council said he was killed at his office.
BREAKING: President Trump says Iran’s Supreme Leader Khamenei is dead. pic.twitter.com/y17d7Ilncz
— The Kobeissi Letter (@KobeissiLetter) February 28, 2026
U.S. President Donald Trump confirmed the news on Truth Social, calling Khamenei “one of the most evil people in history.”
The commander of Iran’s Revolutionary Guard Corps and the secretary of Iran’s Defense Council were also killed in the strikes.
Once the news was confirmed, Bitcoin began recovering. By early Sunday morning, BTC had climbed back to $68,200 on Coinbase.
That is a $5,000 swing in under 24 hours, representing roughly an $80 billion move in market cap.
Around 157,000 traders were liquidated during the 24-hour period, with total liquidations reaching $657 million, split roughly evenly between leveraged longs and shorts, according to CoinGlass.
Crazy moves on Bitcoin today.
Bitcoin dumped $2,800 from its daily high after the US strike on Iran, wiping $58 billion from its market cap.
Then BTC pumped $3,900 to $67k by day’s close, adding $78 billion back to its market cap.
$570 million liquidated in the last 24 hours.… pic.twitter.com/gI6vX8cYJD
— Ash Crypto (@AshCrypto) March 1, 2026
Analyst Ash Crypto noted that markets interpreted Khamenei’s death as a possible end to the U.S.-Iran conflict, which drove the recovery bounce.
Ethereum climbed back toward $2,000, and XRP recovered to around $1.40 as broader crypto markets followed Bitcoin’s lead.
Bitcoin’s recovery brings it back to levels seen on Friday, though it remains within a three-week range-bound channel.
Despite the weekend recovery, Bitcoin closed February down nearly 15%, making it the third-worst February in the asset’s history.
BREAKING: Bitcoin officially turns positive on the day, rising above $66,000.
Bitcoin is now trading ~$1,000 HIGHER than where it was when US and Israeli strikes launched on Iran last night. pic.twitter.com/ExMeF8BlpP
— The Kobeissi Letter (@KobeissiLetter) February 28, 2026
It was only the fourth time since 2013 that Bitcoin ended February in the red. Its worst February was in 2014, when it fell 31%.
BTC is also on track for its worst first quarter since 2018, having lost roughly 23% since January 1.
Iran’s Revolutionary Guards have launched retaliatory strikes on countries hosting U.S. bases, and at least one death has been reported following a strike on Israel.
Under Iran’s constitution, a temporary leadership council made up of the president, head of the judiciary, and a Guardian Council jurist will govern until a successor is chosen by the Assembly of Experts.
At the time of writing, BTC is trading around $67,350, with oil and equity futures markets set to open later on Sunday, which analysts say will offer the next major signal for whether the crypto recovery holds.
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