After the sharp loss in value caused by the military tension in the Middle East, Bitcoin recovered in a short time and took back its losses. Cryptocurrency showed a rapid rise after fluctuating after the US and Israel’s air strikes against Iran.
Developments in the Middle East and Fluctuation in Bitcoin Price
On Friday evening, the news that the USA and Israel carried out air operations against various military targets in Iran was reflected in the market. Allegations that Iran’s religious leader Ali Khamenei was killed during operations were supported by information that there were losses among the state’s highest-ranking military personnel. In response, Iran launched retaliatory attacks against US-based assets in Israel and some Gulf countries. Following these developments, news of explosions came from many cities, especially Tehran, and flights were stopped at various airports.
High Volatility in Investors and Markets
During the first wave of military tension, the price of Bitcoin dropped to $63,000. After the panic in the markets decreased and expectations increased that the conflict would be brought under control, the value of the cryptocurrency started to rise again. As of the next morning, Bitcoin found balance around $68,000 and showed a gain of approximately $5,000 in one day.
This volatility led to large losses in leveraged transactions. CoinGlass data showed that approximately 157 thousand traders lost their positions in the last 24 hours, with a total liquidation of $ 657 million. Both long and short positions suffered similar losses.
How the military and political process in the region will take shape creates uncertainty in the short term for Bitcoin and the markets in general. Economic actors and governments are closely monitoring whether tensions will escalate further.
The cryptocurrency market initially behaved like traditional risk assets; Sales accelerated as geopolitical risk increased, but then there was a strong recovery as investors began to price in a possible decrease in tensions.
Crypto market commentator Ash Crypto stated that this rise has priced in investors’ expectations that the conflict will not spread to the long term, and that Bitcoin can maintain its gains if the violence does not decrease.
While the Weak Trend Continues in February, All Eyes Are on Developments
Despite the rapid recovery, Bitcoin’s overall outlook remains weak. February price performance was recorded as the third worst February on a yearly basis. Larger declines occurred only in 2014 and 2025.
As the first quarter of 2026 is left behind, Bitcoin has shown one of the weakest first quarter performances in recent years, losing nearly 23 percent of its value since the beginning of the year. Recently, news flow and instant developments are as effective on prices as technical levels. A new military activity or diplomatic development can change the direction of the price in a short time.
Jimmy Wales, one of the founders of Wikipedia, contributed to the discussion about the future of Bitcoin. He argued that Bitcoin could continue to operate for decades, but could not become a global store of value and payment system. He also suggested that institutional interest and exchange-traded fund inflows may not be sufficient for stability, and that if a clear usage scenario does not emerge, it may only be used by small groups in the future.
