TLDR:BTC dropped below $64,000 within hours of Israel’s confirmed strike on Iran’s presidential HQ.Ethereum fell over 5% to under $1,900 as traders liquidated risk positions across altcoins.Over $100M in long positions were wiped out within 15 minutes of the strike news hitting markets.Polymarket trader Vivaldi007 turned $385K profit betting on a U.S.-Israel Iran strike since Feb 8.Explosions rocked Tehran after Israel launched strikes on Iran’s presidential headquarters and Ministry of Intelligence. Sirens blared across Israel as the IDF sent emergency alerts to citizens’ phones. Crypto markets responded immediately, shedding over $100 million in long positions within 15 minutes. The joint operation, reportedly involving the United States, sent shockwaves far beyond the Middle East.BREAKING: Israeli media reports that one of the airstrikes targeted the PRESIDENTIAL HEADQUARTERS in Tehran.Iran’s Ministry of Intelligence was also targeted.This was a joint operation between Israel and the United States. https://t.co/WLhdNWR3B3 pic.twitter.com/eH9u21lUHN— Bull Theory (@BullTheoryio) February 28, 2026Israel-Iran Strike Sends Crypto Prices Into FreefallBitcoin dropped roughly 3% within hours of the news breaking. It fell below $64,000 as traders rushed to cut exposure. Ethereum took a harder hit, sliding over 5% to under $1,900. The broader crypto market cap lost around 6% in early trading, according to market data. According to a snapshot from the cryptobubbles, the market appears red. Most assets are recording substantial drops.crypto market snapshot on Crypto BubbleThe IDF confirmed sirens sounded throughout Israel shortly before the strikes became public. Citizens received direct cellular alerts to stay near protected spaces. The military framed the alert as a proactive measure. It signaled the scale of what was unfolding.In the last few minutes, sirens were sounded all throughout Israel, with an advance instruction alert directly to cellular devices to stay within proximity to protected spaces.This is a proactive alert to prepare the public for the possibility of missiles being launched toward…— Israel Defense Forces (@IDF) February 28, 2026On-chain tracking platform Lookonchain reported one high-profile casualty of the volatility. Trader Machi, who had deposited $245,000 just four days prior, was liquidated again. His account dropped to only $13,580. The timing proved catastrophic for leveraged long positions across the board.Not everyone lost. Lookonchain also flagged Polymarket trader Vivaldi007, who had been betting on a U.S.-Israel strike against Iran since February 8. He placed wagers on nearly every available date and kept losing until now. The strikes pushed his total profit to $385,000.Geopolitical Risk Reignites Crypto Market VolatilityThis pattern is not new. When the U.S. struck Iranian nuclear sites in June 2025, BTC plunged below $100,000 during a 7% market-wide selloff. Oil supply fears and global economic uncertainty drove the move. Crypto behaved like a risk asset, not a safe haven.The April 2024 Israel-Iran exchange produced a similar response. BTC briefly dipped under $60,000 as capital rotated toward gold and the dollar. Markets recovered once tensions cooled. Whether that playbook repeats depends on what comes next.Iran’s potential response remains the key variable. A closure of the Strait of Hormuz, which handles roughly 20% of global oil, could spike energy prices and reignite inflation fears. Central bank tightening in that scenario would add further pressure on risk assets. Past modeling suggests a full escalation could cut crypto valuations by 10 to 20% in the short term.The IDF has not issued further operational updates. Markets remain on edge.The post U.S. and Israel Strike Iran, Crypto Market Loses $100M in Minutes appeared first on Blockonomi.