Bitcoin traded around $67,000 on Sunday, exhibiting relative stability following a weekend of heightened geopolitical tension in the Middle East, as traders awaited the reaction of traditional financial markets. The cryptocurrency largely avoided significant volatility despite a joint military operation by the United States and Israel against targets in Iran on Saturday, February 28, 2026.
The action in cryptocurrency markets contrasted with the closure of traditional financial markets, with U.S. Stock market futures down 0.65% at the time of writing. While cryptocurrencies experienced some initial volatility, Bitcoin quickly stabilized, avoiding a major breakout from its recent trading range.
Cryptocurrency trader Michaël van de Poppe described the initial response as “positive,” noting on X that markets were subsequently correcting downwards due to uncertainty surrounding the opening of U.S. Markets. “Now, markets are correcting downwards, as there is uncertainty about how US markets will open tomorrow (and there is still a pending CME gap),” he wrote. He pointed to Bitcoin’s 21-day moving average, currently at $67,627, as a key level to watch for a potential relief rally in March or April. Van de Poppe also referenced a gap in the CME Group Bitcoin futures market, settling lower at $65,880.
Trader BitBull agreed, stating on X that Bitcoin “looks decent short term,” citing a breakout below a support zone that has now become resistance, and predicting a potential rally towards the $73,000-$74,000 level. Some analysts suggested that the geopolitical instability had already been priced into the market, explaining the comparatively muted price action over the weekend. Crypto Caesar, another trader, concluded on X that lateral movement was likely in the coming days.
Adding to market concerns, Iran has reportedly threatened to close the Strait of Hormuz, a critical waterway for global oil shipments. This raised fears of a potential surge in oil prices and a subsequent increase in inflation. JPMorgan research, as cited by trading resource The Kobeissi Letter, suggested the Consumer Price Index (CPI) could rise to 5%, a level not seen in the U.S. Since March 2023, when the Federal Reserve was aggressively raising interest rates. Recent U.S. Inflation data had already exceeded expectations, particularly the Producer Price Index (PPI) figures released on Friday.
The Kobeissi Letter noted that a 5% CPI reading would coincide with a period of aggressive rate hikes by the Federal Reserve, potentially complicating the economic outlook.
Liquidations in the cryptocurrency market passed $250 million in the four hours following the initial reports of the strikes, according to data from CoinGlass. Bitcoin’s price briefly tested $63,000 during this period, before rebounding. The broader digital asset complex experienced losses, with Ethereum falling nearly 6% to $1,864 and Solana declining 2.5%, according to TradingNews.com.
U.S. President Donald Trump confirmed a major bombing campaign inside Iran, specifically targeting nuclear infrastructure, and called on Iranians to “take over your government.” He stated, “When we are finished, take over your government. it will be yours to take.”
