Bitcoin experienced a significant drop, falling below the $64,000 mark over the weekend following reports of strikes by the United States and Israel on targets within Iran. This development spurred a broad risk-off sentiment across global markets, impacting digital assets.

According to a Bloomberg report, Bitcoin's price decreased by as much as 3.8%, reaching $63,038. Ether, the second-largest digital asset by market capitalisation, also saw a decline, sliding 4.5% to $1,835.

Data from CoinGecko indicated that approximately $128 billion was wiped off the total market value of digital assets in the immediate aftermath of the reported explosions in Tehran on Saturday. The selloff was attributed to escalating geopolitical tensions in the Middle East, leading investors to reduce their exposure to riskier assets, including cryptocurrencies.

For Bitcoin, the recent losses are part of a longer downturn that began in October, following the liquidation of approximately $19 billion in leveraged positions shortly after the asset peaked above $126,000.

Market analysts suggest that Bitcoin often serves as a “pressure valve” during significant geopolitical or macroeconomic events occurring outside traditional trading hours.

Bitcoin later recovered some of its losses in the hours following the strikes, with d’Anethan noting that the initial market reaction was not as severe as some investors had anticipated, partly due to the clearance of excessive leverage from the system.

Amid the unfolding military action, US President Donald Trump addressed Iranians in a video posted on Truth Social, urging citizens to take control of their government once the campaign concludes.

Bahrain’s National Communication Centre confirmed on Saturday that a missile struck a service facility at Naval Support Activity Bahrain in the Juffair/Mina Salman port area.

Earlier on Monday, Bitcoin fell sharply as renewed uncertainty over United States tariff policy rattled global markets, dragging down other major cryptocurrencies alongside broader risk assets. Saturday’s geopolitical shock compounds an already fragile crypto market.