The cryptocurrency market faced a catastrophic sell-off on Saturday, February 28, 2026, as reports of coordinated military strikes by the United States and Israel against Iranian targets sent shockwaves through global finance. Bitcoin (BTC), the flagship cryptocurrency, plunged over 6% to hit a multimonth low of $63,038, triggering a cascade of forced selling that wiped out more than $515 million in leveraged positions across major exchanges. The crypto market crash today marks one of the most volatile days in recent history, shattering the relative calm of the first quarter.

Operation Epic Fury Sparks Global Panic

The precipitous drop in digital asset prices coincides directly with the announcement of "Operation Epic Fury," a joint military campaign launched early Saturday morning. According to confirmed reports, U.S. and Israeli forces targeted key military infrastructure and nuclear facilities within Iran. President Donald Trump, in a video statement released on Truth Social, declared the operation a necessary measure to protect national security interests, calling for a "regime change" in Tehran.

The geopolitical escalation was immediate and severe. Explosions were reported near Tehran, and rumors circulated regarding the status of Iran's Supreme Leader, Ayatollah Ali Khamenei. This sudden flare-up in the US Israel Iran conflict impact on crypto was instantaneous, with risk assets dumping in favor of traditional safe havens like gold and U.S. Treasuries. Unlike in previous geopolitical dust-ups where Bitcoin acted as a hedge, the asset class today correlated tightly with tech stocks, tumbling as investors fled to liquidity.

Bitcoin Price Drop: Support Levels Shattered

Bitcoin's descent was rapid and unforgiving. Trading near $67,500 just hours before the news broke, the Bitcoin price drop Iran strike narrative took hold, sending the asset spiraling through key support levels at $66,000 and $65,000. By mid-day, BTC had wicked down to $63,038 on Binance, erasing billions in market capitalization in under four hours.

The sell-off wasn't limited to Bitcoin. Ethereum price crash data shows the second-largest cryptocurrency fared even worse, plummeting over 10% to trade around $1,835. Other major altcoins, including Solana (SOL) and Cardano (ADA), saw double-digit percentage losses, with SOL dropping nearly 12% to hover near $78. The total crypto market cap shrank by over $128 billion in the initial hour of the panic, reflecting extreme fear among retail and institutional investors alike.

$515 Million in Crypto Liquidations: The Leverage Flush

The sharp downward volatility triggered a brutal liquidation cascade. Data from CoinGlass reveals that crypto liquidations February 2026 reached a staggering $515 million in just 24 hours. The vast majority of these—approximately $390 million—were long positions betting on a weekend recovery that never materialized.

Whales and Institutions Caught Off Guard

The suddenness of the strikes caught even sophisticated players offside. Reports indicate that several high-profile whales faced massive margin calls. Notably, on-chain data suggests that wallets associated with prominent decentralized finance (DeFi) figures, including the pseudonymous trader "Machi Big Brother," faced significant liquidations on Ethereum positions as prices sliced through the $1,900 level. This "leverage flush" exacerbated the selling pressure, as exchanges automatically sold collateral into an illiquid market to cover losses.

Geopolitical Risk and the Safe Haven Narrative

Today's events have reignited the fierce debate surrounding the Bitcoin safe haven narrative. Proponents have long argued that Bitcoin serves as "digital gold," a non-sovereign store of value immune to geopolitical strife. However, the market's reaction to the U.S.-Israel strikes suggests otherwise. While gold prices surged 2.5% on the news, Bitcoin moved in tandem with risk-on assets, behaving more like a leveraged tech stock than a crisis hedge.

Analysts suggest that geopolitical risk cryptocurrency market correlations are shifting. In times of extreme uncertainty, cash remains king. "When missiles fly, investors don't want digital codes; they want dollars and gold bars," noted a senior strategist at a major crypto hedge fund. "The de-risking we are seeing today is a classic flight to safety, and right now, crypto is still viewed as a risk asset."

What's Next? Critical Levels to Watch

As the dust settles, traders are eyeing the $60,000 psychological support for Bitcoin. A break below this level could open the door to a deeper correction toward the $52,000 range. Conversely, if tensions de-escalate quickly, a "V-shaped" recovery remains possible, as short sellers may be forced to cover their positions.

For now, the market remains in a state of "Extreme Fear," with the Crypto Fear & Greed Index dropping to single digits. Investors are advised to exercise extreme caution, as volatility is expected to remain elevated throughout the weekend as further details of the military operation emerge.