Quick overview

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Bitcoin surged as much as 3 percent to $68,196 before settling back to roughly $67,000 following Iran’s confirmation of the death of Ayatollah Ali Khamenei, the country’s supreme leader.

BTC put options valued at $1.87 billion were concentrated at the $60,000 mark, indicating a continued need for downside protection.

Digital assets responded swiftly when the joint US-Israel military campaign was announced on Saturday. According to CoinGecko data, the total cryptocurrency market fell by $128 billion on Saturday, with Bitcoin falling as much as 3.8 percent to nearly $63,000.

According to Hayden Hughes, managing partner at Tokenize Capital, “over $128 billion was wiped in minutes, forced liquidations cascaded, and once that selling exhausted itself, the reflex bounce was mechanical.” “Monday is when the actual price discovery takes place.

Iran threatened additional strikes against US-affiliated bases in Iraq after the attack and launched counterattacks on several targets, including Israel, Qatar, the United Arab Emirates, and Bahrain.

According to some analysts, Sunday’s slight increase indicates that traders are preparing for a prolonged price recovery and that cryptocurrency markets are moving past the unrest in Iran. Markus Thielen, head of research at 10x Research, stated that traders were preparing for the impending Federal Reserve meeting.

“Traders generally don’t expect the Iran conflict to have major negative economic consequences, and demand for upside Bitcoin calls has clearly picked up in recent days.” Deribit data showed that Bitcoin call options were concentrated around $75,000.

According to Richard Galvin, co-founder of the hedge fund Digital Asset Capital Management, traders who “used the weakness as a buy-the-dip or close-their-shorts opportunity” were largely responsible for the US attack.