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Geopolitical tensions in the Middle East have reached a peak following news of the death of Iran’s Supreme Leader Ayatollah Ali Khamenei, yet major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have staged a powerful rally, drawing significant market attention. However, global financial authorities remain on high alert, bracing for a potential massive economic aftershock once traditional financial markets open.
According to DL News on March 1 (local time), Bitcoin, which had fallen to the $63,000 range in the aftermath of U.S. and Israeli military operations, briefly surged past $68,000 and rebounded to around $67,000 shortly after the Iranian government officially confirmed the death of Supreme Leader Ayatollah Seyyed Ali Khamenei. Ethereum also climbed more than 6.5% within 24 hours from $1,841 the previous day, approaching the $2,000 mark.
Experts cautioned that true price discovery will begin when U.S. stock markets and spot Bitcoin ETFs reopen on Monday, warning of further volatility as gunfire continues across the Middle East. Hayden Hughes, managing partner of Tokenize Capital, cited the strike on Dubai and the risk of a blockade of the Strait of Hormuz, emphasizing that the situation is far from a localized issue. He analyzed that if investors in spot Bitcoin ETFs start dumping their positions, prices could quickly plunge below $63,000.
On the other hand, optimism persists that the cryptocurrency market has already fully absorbed the shock from Iran. Crypto commentator Ash Crypto stated on X that Bitcoin and Ethereum are climbing higher despite negative developments, interpreting this as evidence that the market views the conflict as short-lived. Markus Thielen, head of research at 10x Research, also noted that traders appear to be downplaying the macroeconomic impact of the Iran situation, adding that demand for call options anticipating further Bitcoin gains has noticeably increased.
In contrast to the optimistic stance of crypto analysts, financial authorities worldwide are preparing for potential chain reactions in the markets. South Korea’s Financial Services Commission Vice Chairman Kim So-young convened an emergency meeting on March 1, expressing strong concern that the once-booming domestic stock market could plunge due to escalating geopolitical risks.
In particular, Korean financial authorities are wary of an influx of retail investors seeking bargain purchases during a short-term correction. The vice chairman warned that the situation in the Middle East remains highly unpredictable and urged investors to exercise extreme caution, noting that a prolonged conflict could inflict very direct and painful damage on the real economy.
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