Bitcoin Plummets $65,138 Amid Escalating US-Israel-Iran Tensions

Bitcoin Prices Recover Amid Geopolitical Tensions

On March 2, 2026, Bitcoin prices marginally declined to $66,923 before recovering 2.7% from the early low of $65,138. The market reacted sharply to escalating tensions between the US, Iran, and Israel.

According to Riya Sehgal, Research Analyst at Delta Exchange, Bitcoin's brief dip to $63,000 over the weekend was quickly recovered to near $66,500, showcasing remarkable structural resilience. The 4-hour BTC chart indicates a strong liquidity sweep below recent lows, with buyers defending the $63,800–$65,000 demand zone.

Persistent inflation, elevated oil prices, and macro uncertainty weigh on risk assets, but Bitcoin's ability to absorb shocks without breaking structure highlights deep underlying demand. If tensions ease, March could usher in a relief rally.

Read also: Bitcoin Price Sinks 6% Below $66,500 Amid ETF Outflows and Institutional Selling

Historically, geopolitical shocks have triggered short-term volatility but also set the stage for recoveries once uncertainty eases. For long-term investors, such phases often present opportunities to accumulate quality assets gradually, generating better risk-adjusted returns.

Trader sentiment remains cautious, with slightly negative funding rates in the futures market, suggesting mild defensive positioning but no extreme bearish positions.

Cryptocurrency prices as of March 2, 2026 (10:01 am IST):

• Ethereum: -1.77%
• BNB: -0.59%
• XRP: -2.64%
• Solana: -3.44%
• TRON: -0.39%
• Dogecoin: -2.58%
• Cardano: -2.73%
• Tether: flat
• USDC: +0.01%

Read also: Bitcoin's Inflation-Hedging Potential Erodes as Price Falls Below $70,000

The top gainers for the day include Hyperliquid and Memecore, with a marginal rise of over 2% each, while Pepe, Decred, and Toncoin plunged by more than 7% each.

Bitcoin enters the monthly trade on a bearish note, recording its 6th consecutive bearish month since 2018-19.

Industry experts predict that the ongoing US-Iran conflict may compel the Fed to print more money, ultimately sending Bitcoin higher. Arthur Hayes believes that the conflict may drive Bitcoin prices up, while Avinash Shekhar, Co-founder & CEO, Pi42, suggests that the market is experiencing a liquidity-led reaction.

Investor advice: Stay disciplined and patient during periods of macro-driven volatility, as this has historically created selective entry opportunities for long-term investors.