Bitcoin drops fast as threat of major war rattles markets
Bitcoin's value plunges (photo: Getty Images)
The value of Bitcoin and other leading cryptocurrencies is plunging amid escalating military tensions and mutual threats between the United States, Israel, and Iran, according to Bloomberg.
Slump of exchange, market reaction
On Sunday, March 22, Bitcoin's price fell 3.3%, dropping to $68,150, which is the lowest level since early March.
Other popular tokens showed even steeper declines: Ether lost nearly 5%, falling to $2,050, while Solana, XRP, and Cardano also depreciated significantly.
Since late February, when US-Israeli attacks on Iran began, the world's largest cryptocurrency has lost roughly 20% of its value.
The situation has once again cast doubt on the ability of digital assets to serve as a reliable store of value during periods of global instability.
Reasons behind decline
Peter Tchir, head of macro strategy at Academy Securities, notes that a combination of factors is currently weighing on the industry.
In addition to a broad sell-off of risky assets, rising energy prices have increased the cost of mining tokens.
"Much of the recent gains to me seem to have been bets on legislation, which is probably getting harder to pass — DC is focused on war, and lately, the new legislation hasn't led to the buying mania from newbies that the crypto community seems to expect. It does seem like risk is increasing again," the expert said.
Tensions in the Strait of Hormuz and Donald Trump's statements about potentially bombing Iranian power plants have also added pressure.
These developments have already pushed oil prices higher, affecting the value of perpetual futures and amplifying investor pessimism ahead of traditional market openings.
Why does cryptocurrency plunge?
In early February, Bitcoin experienced a steep drop, hitting a 16-month low. The price fell to around $60,000, which experts attributed to overall market volatility at the start of 2026.
According to Reuters forecasts, after a 20% decline since the beginning of the year, Bitcoin is expected to continue gradually losing value. Analysts say the current correction is part of a long-term cooling trend in the market.
Meanwhile, 2026 is marked by a major transformation in the cryptocurrency sector. Key trends include blockchain integration into government strategies and the transition of digital assets into fundamental tools for everyday payments.
