The sell-off began immediately after Israel confirmed military action and U.S. President Donald Trump announced American involvement. Markets reacted within minutes. Volatility spiked. Liquidations surged across exchanges.
Before Saturday, Bitcoin was already in a months-long downtrend from its October 2024 all-time high above $126,000. The Iran strikes didn’t start this correction — they accelerated it. Prices have since steadied in the mid-$60,000 range, but momentum is weak. Buyers are absent. Volume is hesitant.
The $60,000 level is the key technical support that matters right now. It held during Bitcoin’s last significant drawdown. A clean break below it opens the door to $55,000 and potentially lower. With Iran threatening retaliation and the risk of a wider regional conflict pulling in countries hosting U.S. military bases, sustained recovery looks difficult in the near term.
Traders are not buying this dip yet. They are waiting.
Why did the Bitcoin price crash today after Israel’s Iran strike?
Geopolitics triggered immediate risk aversion. Israel’s airstrikes reportedly hit multiple Iranian provinces, including areas near Tehran. Iran signaled a “crushing response.” Investors moved out of volatile assets fast.
Bitcoin (BTC-USD) dropped below the crucial $64,000 support level, while Ether (ETH-USD) and altcoins including XRP, Solana, and Avalanche fell between 3% and 5%. The Nasdaq Crypto Index slid 3.14% to 3,167. Crypto reacts instantly to global shocks because it trades 24/7. Unlike equities or gold futures that close on weekends, Bitcoin absorbs news in real time. That explains why $128 billion evaporated so quickly.
This move also fits a broader pattern. Since peaking above $126,000 in October, Bitcoin has been in a multi-month corrective phase. Each geopolitical headline now accelerates volatility rather than triggering fresh breakouts.
Is $60,000 the next major support level for Bitcoin?
Technically, $60,000 is now the most important psychological and structural support. That level previously acted as a rebound zone during the last major correction.
If conflict risk increases or oil prices spike sharply, Bitcoin could test that zone quickly. Derivatives markets suggest traders are preparing for this possibility.
Data from Deribit shows heavy open interest in $40,000 Bitcoin put options ahead of February expiry. That makes it one of the largest downside strikes by positioning. Traders are buying insurance.
Put options allow investors to hedge against deeper declines. Rising demand for them signals fear, not confidence.
However, prices have steadied in the mid-$60,000 range. That suggests short-term stabilization, but conviction buying has not returned yet. Investors want clarity on whether the U.S.–Iran situation escalates.
How are Ether and altcoins reacting to the crypto market crash?
Bitcoin leads. Altcoins follow. Ether fell 4.5% to $1,835 at the peak of the panic. Litecoin dropped over 4%. XRP slid nearly 4%. Broader names like Solana, Avalanche, and Dogecoin also declined sharply.
The total crypto market capitalization fell 1.6% to $2.38 trillion. That number confirms this is not an isolated Bitcoin drop. It is a broad risk reset across digital assets.
When Bitcoin falls on macro or geopolitical shocks, liquidity drains from altcoins faster. Smaller tokens usually experience amplified volatility. That dynamic is playing out again.
If Bitcoin fails to hold $60,000, altcoins could underperform further. Historically, capital first stabilizes in Bitcoin before rotating back into higher-risk tokens.
Will gold benefit as investors flee crypto and stocks?
Gold could be the biggest beneficiary. Safe-haven demand usually rises during Middle East conflicts. However, because most gold markets close over weekends, investors must wait for Asian trading hours to see the full reaction.
Historically, when geopolitical tensions escalate, gold gaps higher at the open. If Iran retaliates broadly, gold prices could challenge previous record highs.
At the same time, the U.S. has reportedly built its largest concentration of air power in the Middle East since 2003. That adds to uncertainty. Energy prices may spike. Inflation fears could return. That combination creates short-term pressure for crypto.
Bitcoin is often called “digital gold,” but during sudden crises, investors still prefer physical gold and U.S. Treasuries first. Only later does crypto attract inflows again.
Is Bitcoin recovery on a dangerous road or a setup for rebound?
In the short term, recovery is fragile. Momentum indicators remain weak. Volatility is elevated. Derivatives positioning favors downside protection. Risk appetite globally is declining.
However, Bitcoin has a history of rebounding after geopolitical sell-offs. Past examples include regional conflicts and military escalations where BTC initially dropped but later recovered once uncertainty stabilized.
The key variable now is escalation. If Iran limits retaliation, markets could recover quickly. If the conflict spreads to neighboring countries hosting U.S. bases, crypto could face prolonged downside pressure.
Investors should watch three signals closely: oil prices, gold futures at the Asian open, and whether Bitcoin can defend $60,000. If support holds and volatility compresses, a relief rally is possible.
