 ▲ Iran’s Supreme Leader Ayatollah Ali Khamenei, whose death was announced by Trump |
The cryptocurrency market, which had plunged amid the outbreak of a full-scale war between Israel and Iran, has staged a dramatic V-shaped rebound, showcasing remarkable resilience. As geopolitical tensions in the Middle East peaked and fear swept over the market, news of the Iranian supreme leader’s death and analysis suggesting that sell-offs had largely been exhausted helped Bitcoin (BTC) swiftly reclaim the $67,000 level.
According to CoinMarketCap on March 1, as of 7:57 a.m. KST, the total cryptocurrency market capitalization stood at $2.31 trillion, up 2.1% from 24 hours earlier. Bitcoin was trading at $67,276.67, up 2.61% over the same period, showing a clear recovery trend. Previously, Bitcoin had fallen as much as 3.8% to $63,038 immediately after news of the military conflict broke, but it erased all losses within a day and turned upward.
Major altcoins also joined the rebound rally. Ethereum (ETH) rose 2.56% to $1,968.20, while XRP climbed 2.17% to $1.38. Solana (SOL) surged 3.97% to $84.53, marking the largest gain among major coins, and Dogecoin (DOGE), which had faltered sharply the previous day, regained stability with a 1.17% increase to $0.09416.
The market’s rapid absorption of geopolitical shocks and sharp rebound were driven by a combination of major macro variables and internal supply-demand factors. U.S. President Donald Trump’s sudden announcement on the 28th (local time) that Iran’s Supreme Leader Ayatollah Seyed Ali Khamenei had died eased some of the market’s extreme risk-off sentiment, as expectations emerged that the escalating Middle East crisis could enter a new phase.
Analysts also pointed to the clearing of excess froth within the crypto market and the pre-pricing of negative factors as contributors to the rebound. Justin D’Anthan, head of research at Arktic Digital, assessed that much of the investment bubble had already deflated and selling pressure had largely been exhausted, limiting the potential impact of shocks such as the Iran crisis. This suggests that much of the geopolitical volatility had already been priced in, helping to prevent additional panic selling.
However, the outlook still calls for caution. CoinMarketCap’s Fear and Greed Index remains at 14, indicating extreme fear, suggesting that investor sentiment has not fully recovered. With uncertainties in the Middle East persisting and traditional financial markets set to open on Monday, potential shifts in institutional capital flows could once again bring significant volatility to the cryptocurrency market. Whether Bitcoin can firmly establish support at the $67,000 level is expected to be a key indicator determining the market’s short-term direction.
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