Bitcoin Recovers After Plunge as US, Israel Bomb Iran

What to Know

$65,051 — Bitcoin clawed back most of its overnight losses after dropping as low as $63,176 during the initial wave of US-Israel strikes on Iran
$490 million in crypto positions were liquidated across exchanges within 24 hours, led by Bitcoin and Ethereum longs, according to CoinGlass
Major altcoins including Ethereum, XRP, and Solana each posted daily losses under 2% after staging similar recoveries
Prediction market users now see a 51% chance the Iranian regime collapses before October, up 20% in the last day

Bitcoin recovered to $65,051 on Friday after plunging overnight when the United States and Israel launched joint strikes against Iran, briefly dragging the leading cryptocurrency down to $63,176. The rebound came within hours of what officials described as "major combat operations" targeting Iranian military infrastructure, though crypto markets remained under pressure amid the escalating crisis.

How Did Bitcoin React to the US-Israel Iran Strikes?

Bitcoin dropped nearly $2,400 in roughly one hour overnight after reports surfaced that the US and Israel had begun bombing military targets across Iran, according to CoinGecko data. The leading digital asset slid from $65,572 to $63,176 before recovering to $65,051 by Friday morning, still reflecting a 0.8% daily loss and a 5.2% decline over the past week.

The joint operation aimed to dismantle Iran's nuclear and ballistic missile capabilities while targeting key military leaders, officials said. The overnight strikes prompted Iran to launch retaliatory attacks against US military assets across the Middle East. News agencies reported mass civilian casualties inside Iran, including 85 deaths after a girls' school in Minah province was struck.

Altcoin Selloff and Crypto Liquidations

Major altcoins mirrored Bitcoin's sharp drop and subsequent bounce. Ethereum, XRP, and Solana all fell steeply in the minutes after the strikes were reported, yet each clawed back most losses by the time Asian and European sessions began. As of this writing, all three altcoins show daily declines of less than 2%.

Leveraged traders bore the brunt of the chaos. CoinGlass data shows approximately $490 million in crypto positions were liquidated over 24 hours, with the vast majority being long bets. Bitcoin accounted for $196 million of those liquidations, while Ethereum followed at $132 million.

Bitcoin's Broader Downtrend

The Iran-driven selloff compounds a punishing stretch for Bitcoin. At its overnight low, the cryptocurrency sat roughly 50% below its all-time high above $126,000 set last October. Bitcoin has shed about 23% over the past month, having started 2026 at a price near $87,000.

Crypto markets have historically sold off during geopolitical crises. Bitcoin and other digital assets fell sharply after Russia invaded Ukraine in 2022, and the pattern repeated during the overnight Iran strikes.

What Comes Next for Crypto Markets?

Users on Myriad, a prediction market, now assign a 51% probability that the Iranian regime will collapse before October — odds that surged 20% over the past day alone. If the conflict escalates further, traders should brace for additional volatility across both crypto and traditional markets.

For now, Bitcoin's swift recovery from its overnight lows offers a cautiously optimistic signal that buyers remain willing to step in at lower price levels. However, with the cryptocurrency deep in a multi-month downtrend and geopolitical uncertainty intensifying, further downside cannot be ruled out.