Tehran unleashed successive waves of missiles and drones across the region, targeting Israel, U.S. military installations and Gulf allies, with blasts reported in Dubai, Kuwait and Bahrain.
What began hours earlier as an Israeli strike on Iran has rapidly morphed into the most expansive Middle Eastern conflict in decades, raising fresh risks for global financial markets — including cryptocurrencies.
According to coverage from Bloomberg, CNN and Reuters, Iran’s barrage extended beyond Israel to include U.S. bases and interests across the Gulf. Bahrain confirmed that an American military facility was struck, while Qatar and the United Arab Emirates said they intercepted incoming missiles over their territories. Explosions were heard in Dubai, and Bahrain temporarily shut its airspace.
Iran’s semi-official Tasnim news agency said all U.S. bases and interests in the region would be considered targets.
U.S. President Donald Trump said Washington had initiated “major combat operations in Iran” aimed at dismantling the country’s missile capabilities, naval assets and nuclear infrastructure. He acknowledged the risk of American casualties, noting that losses “often happen in war.”
Bitcoin, which had already slipped below $64,000 following the initial Israeli strike, managed to hold above $63,000 as Iran’s retaliatory assault unfolded. The relative steadiness appears partly structural: weekend liquidity is typically thin, and much of the leveraged positioning that could have accelerated a sharper sell-off had already been wiped out during the week’s decline from $70,000.
The more consequential test may arrive when traditional markets reopen. Bitcoin often absorbs the first shock of geopolitical stress simply because it is the only major liquid asset trading continuously through weekends.
Stocks, oil and bonds remain closed until Sunday futures trading or Monday’s open. Should those markets gap significantly lower, bitcoin could face a second round of risk-off selling as institutional investors reduce exposure across asset classes in unison.
Such a move could put the $60,000 level back into focus.
Past flare-ups in the Middle East have followed a familiar pattern: bitcoin falls sharply on the headline shock and stabilizes once traditional markets digest the news and tensions appear contained. Iran’s strikes on Israel in April 2025 and earlier confrontations in 2020 unfolded along similar lines.
This episode, however, presents a more complex scenario. Missile impacts reported in Dubai, Kuwait and Bahrain signal a broader regional conflict rather than a contained bilateral exchange — and one centered in some of the world’s most economically critical territory.
The downside case is clear. A widening war could drive oil prices sharply higher, stoking global risk aversion and pressuring bitcoin further. Despite its “digital gold” narrative, the cryptocurrency has historically behaved more like a high-beta risk asset than a traditional safe haven.
The $60,000 level — which held during the Feb. 5 liquidation-driven crash — now stands as the next key support. This time, however, it may be tested under far more severe macro and geopolitical conditions.
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