United States attack on Iran and cryptocurrencies
The recent attack by the United States and Israel on Iran caused an immediate drop in the price of Bitcoin and reignited discussions about the use of cryptocurrencies in conflict scenarios and sanctions, as well as in prediction markets.
Impact on the Cryptocurrency Market
Price Drop: Immediately after the news of the attacks on February 28, 2026, the price of Bitcoin experienced a drop, falling below US$63,000 on some exchanges. Other digital assets also experienced downward movements due to increased global uncertainty and market volatility.
Volatility: The escalation of geopolitical tensions increases volatility in financial markets, including the cryptocurrency, which has already been facing selling pressure in 2026.
Traditional Market Reaction: The conflict also impacts the global economy, with potential effects on oil prices and the strength of the dollar, which in turn pressures the cryptocurrency market.
Cryptocurrencies and Iran
Sanctions Evasion: Iran has used its cryptocurrency ecosystem to mitigate the impact of U.S. economic sanctions. The volume of crypto transactions in the country reached $7.78 billion in 2025, an increase amid turmoil and the devaluation of the local currency, the Iranian rial.
Inflation Protection: For the Iranian population, Bitcoin serves as a form of protection against absurd inflation and the devaluation of the rial, allowing some financial autonomy in the face of economic chaos and government repression.
Prediction Markets: There have been reports of suspicious trading and significant gains on prediction market platforms, such as Polymarket, regarding the likelihood of a U.S. attack on Iran, raising debates about the use of insider information in these markets.
In summary, the conflict has intensified volatility and caused short-term declines for Bitcoin, while highlighting the relevance of cryptocurrencies as hedging tools and sanctions evasion in regions of political and economic instability.
