For weeks, tensions were building between Iran, the United States, Israel, and the broader Middle East. Military buildup. Nuclear talks collapsing. Constant warnings on the timeline.
Now it escalated.
It happened while I was sleeping. But when I woke up at 3 a.m. and saw my alerts exploding, I went straight to my desk. Missiles. Emergency declarations. U.S. involvement confirmed. Airspace closures across the Gulf.
And of course, Bitcoin moving fast.
Today we break down what happened overnight after Iran attacked and Israel responded, how global markets reacted, what oil and DeFi are signaling, and how I’m managing my BTC trade in real time.
Iran Attacked: What We Know So Far
Israel launched what it described as a preemptive strike against Iran, hitting targets in Tehran and other locations tied to military and missile infrastructure.
Shortly after, a U.S. official confirmed American participation. Strikes reportedly came from air and sea. The Israeli Defense Minister declared an immediate nationwide state of emergency.
Images from Tehran showed smoke rising over urban areas. Some reports suggested leadership-linked facilities may have been targeted, though confirmation remains limited.
The IDF publicly warned civilians near Iranian military industrial sites to evacuate immediately. The message was clear: escalation was expected.
Then came retaliation.
Iran launched waves of missiles and drones targeting Israel and U.S. bases across the Gulf. Explosions were reported in multiple locations. Bahrain confirmed an American base was attacked. Airspace closures followed in parts of the region. Dubai reported interceptions overhead.
This is no longer contained tension. It is broad regional military engagement.
U.S. “Major Combat Operations” Confirmed
President Trump stated that the U.S. had begun what he described as “major combat operations” in Iran. According to statements, American forces are targeting missile, naval, and nuclear infrastructure rather than regime leadership.
Meanwhile, Israeli operations appear broader.
This distinction matters. It signals coordination, but also separate objectives.
Iran, for its part, reportedly declared that all U.S. bases and interests in the region are legitimate targets.
This dramatically increases geopolitical risk.
Missiles landing near major Gulf economic hubs is not a bilateral exchange. It is a conflict touching critical energy infrastructure and global trade arteries.
Oil Spikes as Strait of Hormuz Risk Returns
The market reaction was immediate.
Oil-linked perpetual futures surged more than 5% on decentralized exchange Hyperliquid. Oil-USD contracts jumped sharply, with millions in volume flooding in within hours.
Gold and silver perps also rallied as safe-haven flows kicked in.
The reason is simple.
Iran is a major oil producer. More importantly, it controls large portions of the Strait of Hormuz, one of the most important chokepoints in global energy supply. Hundreds of billions of dollars worth of oil and gas pass through that corridor annually.
If Iran were to weaponize control of the strait, oil prices could surge aggressively.
Higher oil means higher inflation pressure. Higher inflation makes it harder for central banks to cut rates. And tighter financial conditions typically hurt risk assets.
So while crypto trades in isolation at times, macro flows still matter.
Bitcoin Falls Below $64K After Iran Attacked
When the strikes hit headlines, Bitcoin reacted immediately.
BTC fell below $64,000 and briefly traded near $63,000. That marked its lowest level since the early February crash when price dipped under $60,000.
The move extended what had already been a weak week for risk assets.
This follows a well-established pattern.
Bitcoin trades 24 hours a day, 7 days a week. Stocks and bonds do not. When geopolitical shocks hit on weekends, crypto becomes the only major liquid asset traders can exit.
Bitcoin acts as a pressure valve.
In this case, more than $100 million in long crypto positions were liquidated within minutes. Roughly $136 million in total liquidations were recorded in a short time window.
Altcoins were hit even harder:
- Ethereum fell over 7%
- Solana dropped nearly 10%
- XRP slid around 8%
- BNB, ADA, and DOGE all lost key short-term support
The reaction was sharp. But not chaotic.
That distinction matters.
Why Bitcoin Often Sells First — and Recovers
Whenever Iran attacked or Israel responded in past escalations, Bitcoin has followed a familiar pattern.
Initial shock.
Immediate sell-off.
Then stabilization.
We saw this in prior Middle East flare-ups. We saw it during earlier U.S.–Iran tensions in 2020. We saw it in more recent Israel–Lebanon escalations in 2025.
Bitcoin drops fast because it’s liquid and open.
But once traditional markets reopen and absorb the risk, BTC often recovers if the situation appears contained.
The key question now is whether this conflict remains contained.
Technical Structure: Key Levels to Watch
Technically, Bitcoin is sitting at a decision point.
1️⃣ Weekly Multi-Year Support Zone
BTC has revisited a long-term support band in the high $60,000 region. This area has historically acted as a pivot zone during prior cycle resets.
Some analysts point out that the last time Bitcoin tapped similar structural support, a powerful multi-month rally followed.
However, support is not a guarantee. It is a battleground.
If buyers defend this zone, we could see stabilization and a move back toward prior range highs.
If it fails, the next major demand zone sits significantly lower.
2️⃣ The $65K Four-Hour Structure
On the four-hour chart, $65,000 is a clear short-term pivot.
Price reacted to that zone multiple times. It intersects with a broader descending structure. Lower highs have formed beneath trendline resistance.
A constructive bounce above $65K could open a retrace toward mid-$66K or even $68K.
Failure could send price toward $60K quickly.
Momentum shifted bearish after two strong red candles broke short-term structure. That is why reaction here is critical.
Will Bitcoin Hit $60,000?
If traditional markets open Monday with a sharp gap lower, Bitcoin could face a second wave of selling.
Crypto absorbs the first shock.
Equities absorb the second.
If oil continues to spike and risk aversion spreads globally, $60,000 becomes the next line of defense.
However, there is another side.
Related: Was Jane Street the master Bitcoin manipulator?
The “Worst Is Over” Argument
The last time Israel–Lebanon tensions exploded across social media, the timeline was pure fear. Bombing videos everywhere. Panic commentary nonstop.
Bitcoin barely moved.
A 4% drop. Then green days followed.
Why?
Because anticipation selling had already happened.
For weeks, every rally was aggressively sold. Traders were pricing in escalation before it arrived.
Now that Iran attacked and Israel responded directly, some traders may interpret this as peak uncertainty.
Markets hate uncertainty more than bad news.
Once the event happens, capital slowly scales back in under the logic that the worst has been priced.
If this conflict stabilizes rather than broadens, that mentality could return quickly.
Weekend War Timing Again
One more observation.
Major U.S.-involved military escalations often occur when traditional markets are closed.
Stocks are shut.
Bonds are shut.
Futures limited.
Crypto is not.
Whether coincidence or strategy, the effect is the same. Bitcoin absorbs the macro shock first.
By the time New York opens, part of the damage may already be priced.
If de-escalation headlines hit before Monday, equities might open relatively calm.
If not, broader risk-off flows could intensify.
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My Bitcoin Trade Update
A few days ago, I shared that I was long from 62.8.
That trade worked well. Until the war headlines hit.
Fortunately, I also shared my hedge levels.
Right now I am both long and short. That keeps me neutral overall.
When I woke up and saw BTC bounce from $63,000 with higher lows forming on lower timeframes, I closed half of my short. That increased my upside exposure.
Here is my plan:
- If BTC breaks below $60,000, I will close my long completely and keep shorts.
- I will scale into larger short hedges near key liquidity levels.
- The major resistance zone remains $69,000 to $71,000.
- A reclaim of that range changes the narrative entirely.
This will likely be an active weekend.
Volatility is opportunity.
The key is staying flexible.
Risk Management and DCA
In times of war, things can escalate very quickly.
You do not want to be in a situation where one big red candle hits, then liquidation cascades follow, and you are stuck in a terrible trade deep in loss.
This is when risk management becomes more important than ever.
Pick your invalidation points.
Set your stop loss.
Respect it.
If your stop gets hit, that does not mean you failed. It means the market invalidated your idea. Close it, step back, and re-evaluate. A new setup will always come.
What you do not want to do is revenge trade.
If revenge trading is one of your leaks, make a rule. Two losses and you stop for the day. Walk away. Trade tomorrow. Get some air. Reset mentally.
War headlines create emotional volatility. Do not let that turn into account volatility.
For Longer-Term Buyers: DCA Is the Play
If you are not actively trading and you are building long-term exposure, this is where dollar-cost averaging makes sense.
We are testing near range lows again.
That is exactly where DCA strategies shine.
Instead of trying to catch the exact bottom, you spread your buys across levels. You remove emotion. You remove timing stress.
In our recent guide, we explained how DCA works in detail. The key idea is simple:
Buy systematically.
Buy near weakness.
Let time do the work.
Whether this escalates further or stabilizes, having a structured plan beats reacting emotionally.
Especially during war-driven volatility.
Final Words
Iran attacked. Israel responded. The U.S. entered directly. Regional escalation is real.
Oil is moving.
Gold is moving.
Bitcoin reacted.
But panic is not the same as collapse.
Bitcoin is holding above $63,000 for now. That matters.
The next 24–48 hours will determine whether this becomes prolonged war-driven macro stress or another geopolitical shock that markets absorb quickly.
I’ll be watching the timeline closely.
Because in moments like this, headlines move fast.
But price tells the truth.
If you enjoyed this blog, check out our recent gold update.
As always, don’t forget to claim your bonus below on Bybit. See you next time!
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