Crypto market crashes after US and Israel attack Iran

Last Updated on 28 February 2026 by CryptoTips.eu

The crypto market plunges after the United States and Israel launch a large-scale military attack on Iran. Bitcoin falls 6.36% to $63,645 and the total market capitalization loses more than 5% in a single day.

Within 24 hours, $517.82 million in positions is liquidated, impacting 153,329 traders.

The Fear & Greed Index sits at 11, a level indicating extreme fear. Meanwhile, gold rises 4% to $5,400, once again confirming its role as a safe haven during times of geopolitical crisis.

Military strike on Iran sends markets into free fall

The US and Israel carry out a joint attack on Iran on Saturday under the codename “Lion’s Roar.” Multiple targets in Tehran are hit, including missile launch platforms and possibly the presidential headquarters. President Trump describes the operation as massive and ongoing, aimed at destroying Iran’s missile capabilities and disabling its naval forces. Israel declares a state of emergency and closes its airspace.

Iran responds with an initial retaliatory strike of reportedly 30 missiles toward Israel. A second wave of attacks from the US and Israel is said to be in preparation. Notably, large numbers of oil tankers left Iran before the strike, suggesting the operation had been planned for some time. The escalation sends shockwaves through financial markets, with risk assets such as crypto taking the hardest hit.

Half a billion in liquidations within 24 hours

The CoinGlass liquidation heatmap shows the extent of the damage. In total, $517.82 million in positions disappears within 24 hours. Long positions are hit the hardest at $445.35 million, compared to $72.47 million in shorts. Bitcoin accounts for $199.58 million in liquidations, Ethereum for $153.94 million, and Solana for $29.56 million. The largest single liquidation amounts to $11.17 million on the BTCUSDT pair on Aster.

Solana is the hardest-hit major altcoin, falling 10.8% to $78.31. Dogecoin drops 9.36% to $0.0892. Ethereum declines 9% to $1,858 and XRP loses 8.86% to $1.29. BNB holds up relatively better with a 5.58% decline to $593.47. The total market capitalization falls to $2.30 trillion.

Capitulation not over yet

On-chain data shows that realized losses continue to dominate the market. The weekly average of realized losses stands at $783 million, compared to just $270 million in realized profits. This results in a net loss of $513 million, a clear sign that the capitulation phase is not yet complete.

The broader macro backdrop offers little hope for a quick recovery. Escalating tensions with Iran add further uncertainty that financial markets are unlikely to absorb quickly. Gold benefits once again, rising 4.01% to $5,400, while the S&P 500 also comes under pressure, falling 0.43% to $6,880. Historically, periods of extreme capitulation and fear often mark market bottoms, but the duration and depth of such phases are inherently difficult to predict. With an active military conflict as the backdrop, uncertainty is greater than during previous sell-offs, making a rapid recovery seem unlikely.


Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu