BlockBeats News, March 1st, according to Bloomberg, after Iran confirmed the death of Supreme Leader Ali Khamenei in a US military operation, the crypto market saw a sharp rebound in early Asian trading on Sunday.
Bitcoin rose as much as 2.21% to $68,196, then fell back to around $67,300; the day before, it had fallen 3.8%. Ethereum saw a peak increase of 4.58%, reclaiming the $2,000 level.
Data shows that after a market capitalization loss of around $128 billion the previous day, the crypto market had recovered about $32 billion on Sunday morning. Analysts pointed out that due to the crypto market’s 24/7 trading, Bitcoin acted as a “liquidity pressure relief valve” during the weekend geopolitical escalation, absorbing selling pressure that might have otherwise spread to the stock, bond, and commodity markets.
However, the market still faces uncertainty. Iran has retaliated against multiple targets, including Israel, Qatar, the UAE, and Bahrain, and has threatened further strikes on US-related bases. Some traders believe that true price discovery may occur after US stocks and Bitcoin ETFs resume trading on Monday.
The derivative market also experienced significant volatility. Analysis firms noted that Bitcoin derivative liquidations surged by about $1.8 billion in a single hour last Saturday, indicating a rise in short-term hedging sentiment. At the same time, tokenized commodity contracts on the decentralized exchange platform Hyperliquid, linked to oil, gold, and silver, also saw price increases.
