 ▲ Supporters of Iranian protesters in the U.S. cheer the announcement of Khamenei’s death |
News that Iran’s Supreme Leader has been killed in U.S. and Israeli airstrikes has sparked a relief rally in the cryptocurrency market, which had been weighed down by fears of an all-out war. Bitcoin (BTC) and XRP (Ripple) surged past $68,000 on easing tensions.
According to crypto media outlet CoinDesk on March 1 (local time), immediately after Iranian state media officially confirmed the death of Supreme Leader Ayatollah Seyyed Ali Khamenei, Bitcoin soared to the $68,000 level in Sunday trading, recouping most of Saturday’s war-driven losses. In thin Sunday liquidity, a single headline triggered a dramatic surge from $64,000 to $68,000 within hours, expanding total market capitalization by about $80 billion.
Khamenei had been the ultimate authority overseeing Iran’s military, foreign policy, and nuclear program. During the sudden power vacuum following his death, an interim council comprising the president, the head of the judiciary, and a jurist from the Guardian Council will assume governance under Iran’s constitution, with a successor to be elected by the Assembly of Experts thereafter. U.S. President Donald Trump urged the Iranian people to rise up, calling the situation a once-in-decades opportunity for regime change, and emphasized that U.S. strikes would continue for as long as necessary.
Although Iran has launched missiles toward Israel and Israeli airstrikes are ongoing, markets are betting that a prolonged leadership vacuum increases the chances of a ceasefire rather than sustained escalation. This sentiment has fueled swift capital flows into risk assets, driving gains across cryptocurrencies including XRP.
The real test, however, is expected to come when oil and equity futures markets open later Sunday. Iran sits at the heart of the Middle East, a region responsible for roughly one-third of global oil exports. If the situation is interpreted as triggering political instability or supply chain disruptions, energy prices could surge. That, in turn, may stoke global inflation expectations and tighten financial conditions, reintroducing heavy downside pressure on risk assets such as Bitcoin.
Conversely, if investors gain confidence that Iran’s succession system will ensure stable decision-making and avoid a broader war, the cryptocurrency market could secure sustained upward momentum rather than faltering, similar to last Wednesday’s attempt to break above $70,000.
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