(Bloomberg) — Bitcoin and other digital assets fell sharply after the US and Israel began striking targets across Iran on Saturday.
Bitcoin dropped as much as 3.8% to $63,038, while Ether, the second-largest token, slid 4.5% to $1,835. Roughly $128 billion in market value was erased across digital assets in the immediate aftermath of the news, according to data from CoinGecko.
Several large explosions were reported in Tehran on Saturday. Shortly after, US President Donald Trump urged Iranians to take over the government once the military campaign comes to an end.
“The hour for your freedom is at hand,” Trump said, addressing Iranians in a video posted on Truth Social. “When we’re finished, take over your government. It will be yours to take. This will be probably your only chance for generations.”
For Bitcoin, the losses extend a months-long selloff in crypto markets, beginning with the liquidation of some $19 billion in leveraged positions in October, just days after Bitcoin peaked at over $126,000.
“As always, when critical events take place during the weekend, Bitcoin plays the role of pressure valve,” said Justin d’Anethan, head of research at Arctic Digital.
Bitcoin pared some of its losses in the hours after the attacks. D’Anethan said the initial impact on the token wasn’t as drastic as some might have expected.
“With a lot of the leverage already cleared out and exhausted sellers, there’s only so much impact macro events can have,” he added. “Not to say Bitcoin cannot go lower, just that a lot of the volatility has already been flushed out.”