Escalating tensions in the West Asia have rattled global crypto markets, triggering sharp swings in Bitcoin and other major digital assets as investors dumped risk.
Sathvik Vishwanath, the co-founder & CEO, Unocoin, noted that as of early March, the intensifying conflict in the West Asia is driving elevated volatility across the global cryptocurrency market rather than stability. Following reports of direct military action involving Iran in late February/early March, major digital assets like Bitcoin and Ethereum experienced immediate sharp declines, with Bitcoin dipping toward the $63,000 area before staging partial rebounds.
“These swings underscore crypto’s behavior as a high-risk, risk-sensitive asset rather than a traditional safe haven. Rapid de-risking triggered substantial leveraged liquidations, estimated in the hundreds of millions of dollars, intensifying short-term price turbulence. Correlation with broader ‘risk-on’ markets has become more pronounced: crypto has tended to move with equities sentiment, while traditional safe havens like gold reached all-time highs amid the geopolitical shock,” he observed.
Looking ahead, prolonged uncertainty, especially any threat to strategic chokepoints like the Strait of Hormuz that underpin global energy flows could sustain downward pressure on risk assets including crypto.
At the same time, structural factors such as institutional inflows into Bitcoin ETFs and the market’s 24/7 liquidity framework have supported rapid recoveries from interim drawdowns. Analysts broadly agree that further volatility is likely to persist until there is meaningful de-escalation of the conflict.
Meanwhile, Nischal Shetty, Founder, WazirX, added that after a $300 million leverage flush, Bitcoin’s weakening sentiment improved marginally, even as equities slid on geopolitical tensions. The support levels are intact and the price reaching $68,000 levels, makes the near-term outlook neutral, inclining towards consolidation.
However, the short term gain which was sustained only by liquidation of over leveraged positions might not sustain, and Bitcoin might follow the equities way, with more investors allocating capital to risk off assets or limiting exposure to trades
“The current increase of around 4% in the last 24 hours indicates that the market speculations of Fed infusing liquidity to tackle war based economic impact, also have chances of boosting Bitcoin prices. Investors are treading cautiously but are also swept by the majority sentiment,” he said.
Riya Sehgal, Research Analyst, Delta Exchange, argued that despite geopolitical tensions in the West Asia, investors remain composed, as seen in the $1 billion inflows into crypto investment products last week, led by Bitcoin and Ethereum. This signals renewed institutional interest amid broader risk aversion.
She observed that Bitcoin is consolidating between $63,500 and $70,000, forming higher lows on the 4-hour chart, a structure that often precedes a breakout. A sustained move above the $70,000-$71,000 zone could potentially open the path toward $75,000, while a breakdown below $63,500 may expose the $60,000-$58,000 support cluster.
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Published on March 3, 2026
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