Trump confirms Iran's Khamenei death, crypto market $652 million liquidation wave erupts

After the United States and Israel launched a large-scale military operation codenamed “Operation Epic Fury,” Israel subsequently claimed that Iran’s Supreme Leader Khamenei was killed in a precise strike at his office in Tehran, which was later confirmed by Iranian state television. Over 150,000 traders were forcibly liquidated within 24 hours in the crypto market, with the total liquidation amount exceeding $652 million.

Khamenei’s Death and the Full Escalation of Middle East Tensions

The targets of “Operation Epic Fury” included Iran’s nuclear facilities, missile production bases, and naval forces. Iran’s 24 provinces were bombed, with preliminary reports indicating at least 201 deaths and 747 injuries. Following the official confirmation of Khamenei’s death by Iranian media, Iran announced a 40-day national mourning period and a 7-day work stoppage.

Iran immediately retaliated, with the Revolutionary Guards launching multiple ballistic missiles and drones at U.S. military bases in Bahrain, Kuwait, Qatar, and the UAE. Debris struck the Dubai Sailing Hotel and Dubai International Airport, causing damage to facilities and injuries to personnel.

Core Market Impact of Middle East Conflict

Hormuz Strait Threat: The Revolutionary Guards issued warnings and temporarily halted traffic through the strait; approximately 20% of global oil supply passes through this route.

Oil Price Trends: Brent crude oil briefly approached $72.8 per barrel; JPMorgan warned that if the strait is fully closed, oil prices could surge to $120–150.

Inflation Risks: Rising energy costs are expected to push the US CPI back to 5%, potentially delaying the Federal Reserve’s rate cuts.

Polymarket Prediction: About 56% of users believe the Strait of Hormuz will partially or fully close before the end of March; however, analysts note that China, as Iran’s largest oil buyer, would not allow a complete blockade.

Crypto Market $652 Million Liquidation: A Pressure Valve and a Double Role for Risk Assets

Following the news, Bitcoin plummeted from $65,500 to $63,000 within an hour, a nearly 4% drop; Ethereum briefly fell below $1,800. According to CoinGlass data, Bitcoin liquidations amounted to about $300 million, and Ethereum to $163 million. Bitcoin futures trading volume surged to $68.2 billion, far exceeding the spot trading volume of $7 billion, amplifying the decline through derivatives markets.

However, as the market interpreted Khamenei’s death as a sign of “accelerated regime change and peace talks,” Bitcoin rebounded strongly, briefly surpassing $68,000. This sharp drop and rebound reveal Bitcoin’s dual role in geopolitical crises: acting as a “pressure valve” during market closures to absorb risk sentiment, but also being among the first high-risk assets sold off in initial panic.

Currently, the Fear & Greed Index has fallen to 14, indicating extreme fear, which some analysts see as a contrarian signal. Last week, spot Bitcoin ETF inflows approached $254 million. Monday’s US stock market open will be a true test of whether institutional investors will maintain their holdings. Key support levels: Bitcoin at $60,000, Ethereum at $1,750.

Frequently Asked Questions

Q: Why did Bitcoin rebound after Trump confirmed Khamenei’s death?
The news was interpreted by the market as a potential “power vacuum” in Iran, with some traders betting that this would accelerate easing of tensions or lead to peace talks, causing Bitcoin to quickly rebound from $63,000 to over $68,000, reflecting market sensitivity to geopolitical turning points.

Q: What impact would a closure of the Strait of Hormuz have on the crypto market?
A blockade would push global oil prices to $120–150 per barrel, directly increasing inflation, delaying Fed rate cuts, and exerting long-term downward pressure on risk assets like Bitcoin. It would also reduce market liquidity, intensifying downside risks for cryptocurrencies.

Q: How does Iran itself influence the crypto market?
Iran established a crypto ecosystem worth $7.78 billion in 2025, contributing 2–5% of the global Bitcoin hash rate. Damage to power infrastructure from military conflicts could temporarily reduce Iran’s mining capacity. Many Iranians use Bitcoin and USDT to hedge against the 96% devaluation of the rial, leading to significant capital flow changes during the conflict.