Iran fired multiple waves of missiles and drones across the region, striking Israel, U.S. military sites and Gulf allies, with explosions reported in Dubai, Kuwait and Bahrain.
What began as an Israeli attack on Iranian targets just hours earlier has escalated into the most sweeping Middle East conflict in decades, heightening risks for global markets — cryptocurrencies included.
Reports from Bloomberg, CNN and Reuters said Iran’s offensive extended beyond Israel to U.S. bases and strategic interests across the Gulf. Bahrain confirmed an American military installation had been targeted. Qatar and the United Arab Emirates reported intercepting missiles over their territory, while explosions were heard in Dubai. Bahrain moved to close its airspace entirely.
Iran’s semi-official Tasnim news agency declared that all U.S. bases and interests in the region would be considered legitimate targets.
U.S. President Donald Trump said Washington had initiated “major combat operations in Iran,” aimed at destroying the country’s missile arsenal, naval assets and nuclear facilities. He warned that American casualties were possible, describing such losses as an unfortunate reality of war.
Bitcoin, which had already dropped below $64,000 following the initial Israeli strike, remained above $63,000 as Iran’s retaliatory wave unfolded. The relative resilience appears partly technical. Weekend trading volumes are typically thin, and much of the leverage that could have intensified a deeper sell-off had already been flushed during the prior slide from $70,000.
The real inflection point may come when traditional markets reopen. Bitcoin often absorbs the first wave of geopolitical stress simply because it trades around the clock, including weekends.
Equities, oil and fixed-income markets do not reopen until Sunday futures trading or Monday’s cash session. If those markets gap lower, bitcoin could face a second round of risk-off flows as asset managers reduce exposure across portfolios simultaneously.
That scenario could bring the $60,000 threshold back into play.
Historically, Middle East escalations have followed a pattern in which bitcoin sells off sharply on the initial shock, then stabilizes once broader markets process the news and tensions appear contained. Iran’s strikes on Israel in April 2025 and similar flare-ups in 2020 followed that script.
This time, however, the containment narrative is harder to sustain. Missile strikes reported in Dubai, Kuwait and Bahrain suggest a widening regional conflict rather than a limited exchange — one unfolding in some of the world’s most economically sensitive corridors.
The downside risks are straightforward. A broader war could send oil prices surging, fueling global risk aversion and adding pressure to bitcoin. Despite its reputation as “digital gold,” the asset has historically traded more like a high-beta risk play than a defensive haven.
The $60,000 level — which held during the Feb. 5 liquidation-driven sell-off — now serves as the next major line of support. Unlike a leverage flush, however, this test would come against a backdrop of escalating geopolitical and macroeconomic stress.
