 ▲ Cryptocurrency market crash, Bitcoin (BTC)/ChatGPT-generated image |
After U.S. President Donald Trump officially confirmed an attack on Iran, the virtual asset market was plunged into an unprecedented geopolitical crisis, sending Bitcoin (BTC) tumbling to the $63,000 level.
According to a February 28 (local time) report by cryptocurrency media outlet CryptoPotato, major virtual assets including Bitcoin fell sharply immediately after news broke that President Trump had approved military action. The decline came just as Bitcoin was attempting to rebound and break above $70,000, amplifying investor shock and instantly erasing positive market sentiment. Bitcoin plunged from around $67,000 at the beginning of the week to $64,000, briefly rebounded, but ultimately slid to the $63,000 support level following the war news.
Major altcoins including Ethereum (ETH), Solana (SOL), and XRP suffered even steeper losses than Bitcoin, intensifying market fear. As war risks in the Middle East became a reality, hundreds of millions of dollars in long positions were liquidated in the derivatives market, with investors rapidly exiting risk assets to protect their capital. Altcoins in particular recorded declines far exceeding Bitcoin’s drop, creating what traders described as a “bloodbath” in the market.
The total cryptocurrency market capitalization shrank by hundreds of billions of dollars in a short period, falling to approximately $2.36 trillion. The Crypto Fear & Greed Index, which gauges market sentiment, entered the “extreme fear” zone, reflecting mounting psychological pressure among investors and expectations that the downturn may not ease quickly. XRP also failed to escape the broader market slump, continuing its downtrend while facing heightened price volatility amid deepening liquidity shortages on exchanges.
Market analysts noted that the latest price drop was less a technical correction and more a panic-driven sell-off triggered by an unexpected external geopolitical shock. If Bitcoin fails to defend the $63,000 support level, there is a significant risk of further decline toward the psychologically important low $60,000 range, which could exert even harsher downward pressure on the altcoin market. President Trump’s hawkish foreign policy stance has emerged as a key variable increasing uncertainty across asset markets and is also negatively affecting liquidity cycles in traditional financial markets.
The Bitcoin and altcoin markets are expected to remain highly volatile until geopolitical tensions ease. Investors are closely monitoring further military developments and shifts in the international landscape while focusing intensely on risk management. Whether prices can hold key levels over the weekend is likely to serve as a decisive indicator of the crypto market’s resilience and the potential timing of a trend reversal.
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