Joint military operations by the United States and Israel targeting Iranian facilities on Saturday triggered a sharp decline across digital asset markets. Bitcoin dropped 3.8% to $63,038, while Ether fell 4.5% to $1,835. According to data from CoinGecko, the sector's total market capitalization saw an immediate loss of approximately $128 billion.
Following reports of explosions in Tehran, Donald Trump took to his Truth Social platform to call for regime change in Iran once the military campaign concludes. The U.S. President described the current moment as the "hour of liberation" and a unique opportunity for generations of Iranians to take control of their country's future.
The current slump extends a prolonged sell-off trend that began in October with the liquidation of $19 billion in positions, shortly after Bitcoin hit an all-time high above $126,000. Analysts at Arctic Digital highlighted several key factors regarding the market's reaction:
First, during weekends, Bitcoin traditionally serves as a "pressure valve" for global market sentiment when traditional exchanges are closed. Second, the primary cryptocurrency demonstrated resilience by quickly recovering a portion of its initial losses. Finally, experts noted that because excessive leverage has already been flushed out of the market, the impact of macroeconomic shocks has become less radical, though the potential for further downside remains.