Bitcoin approached $63,000 in trading on Saturday after the United States and Israel launched military strikes against Iran, sending the largest cryptocurrency down about 3% in a matter of hours and extending what had already been a difficult weekend for risk assets.
The move takes Bitcoin to its lowest level since the Feb. 5 crash, when the token briefly fell below $60,000.
Israeli Defense Minister Israel Katz declared an immediate state of emergency in all areas of Israel. A US official confirmed US involvement in the attacks, The Wall Street Journal reported.
The liquidation follows a well-established pattern. Bitcoin trades 24/7, while stock and bond markets are closed on weekends.
That makes it one of the only large, liquid assets available for traders to sell when geopolitical risk rises outside of traditional market hours.
The result is that bitcoin often acts as a pressure valve for broader risk-off sentiment during the weekend’s events, absorbing selling that would otherwise spill over into stocks, commodities and currencies if those markets were open.
The attack threatens a broader regional conflict in one of the most economically sensitive parts of the world, following a month of U.S. military buildup and failed negotiations over Iran’s nuclear program.
