The bitcoin price has dropped sharply, plunging toward $60,000 per bitcoin and losing almost 5% in a matter of minutes.
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Bitcoin’s plunge comes as Isreal strikes Iran, with the U.S. participating in the attack, according to AP sources.
Israel launched what it called a “preemptive strike” against Iran on Saturday morning local time, according to the country’s defence minister Israel Katz, it was reported by Reuters.
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“Bitcoin just dropped off a cliff,” one bitcoin and crypto market watcher posted to X, adding that “Monday will be a bloodbath in the market [as the] flight to safety will accelerate.”
The bitcoin price has failed to trade in line with gold in recent months, damaging its reputation as a burgeoning safe haven asset that’s sometimes referred to as digital gold.
Ahead of the attack, analysts speculated what war with Iran could mean for bitcoin, gold and stocks.
“From a macroeconomic perspective, any direct confrontation could disrupt energy markets and push oil prices higher, exerting upward pressure on inflation and limiting central banks’ room for maneuver. In such an environment, investors tend to reduce exposure to volatile assets, increase liquidity holdings, or shift toward traditional safe havens,” Rania Gule, senior market analyst at XS.com, said in emailed comments.
“Some estimates suggest that gold could rise by around 15% within two weeks in the event of a direct conflict, targeting a range between $5,500 and $5,800 per ounce. Whether these projections materialize or not, the message is clear: in moments of existential risk, investors return to assets that have historically preserved value. In this context, I believe bitcoin—despite the ‘digital gold’ narrative—has not yet proven itself as a safe haven during sharp geopolitical shocks. Its recent behavior indicates that it is still priced as a high-beta risk asset sensitive to global liquidity flows.”