Crypto markets crash: Bitcoin down 2.37%, Ethereum slides 2.69% amid Middle East tensions – Explained

Saturday, Feb 28: Cryptocurrency markets witnessed broad-based selling pressure after geopolitical tensions escalated in the Middle East.

Israel launched what it described as a “preemptive strike” against Iran early Saturday morning, escalating tensions in an already volatile region. The announcement was made by Defense Minister Israel Katz. Shortly after the strike, a nationwide state of emergency was declared across Israel in anticipation of possible retaliation from Iran.

The Israeli government said the emergency measures were implemented due to expectations that Iran could respond with drones and ballistic missiles. Security forces were placed on high alert, air defense systems were activated, and emergency response teams were mobilised across key cities and strategic locations.

The developments triggered a risk-off sentiment across global markets, including digital assets.

Bitcoin fell 2.37% to $64,029.03, while Ethereum dropped 2.69% to $1,870.23. Solana declined 3.27% to $78.78, XRP slipped 2.17% to $1.32, and BNB fell 2.24% to $597.54. Dogecoin was down 3.02% to $0.08884, and Cardano dropped 3.10% to $0.2667.

The broader crypto index also reflected weakness, with multiple altcoins posting losses between 2% and 10% as investors moved towards safer assets amid rising geopolitical uncertainty.

While stablecoins such as USDT and USDC remained largely unchanged, the overall market mood remained cautious as traders monitored further developments from the Middle East.