On February 28, 2026, Bitcoin derivatives sell volume spiked by $1.8 billion within one hour, according to CryptoQuant, following U.S. strikes on Iran. Analyst Sweep warned the conflict could trigger one of the largest BTC supply events, even as spot prices rebounded to around $66.4k and briefly touched $68k earlier yesterday.

Bitcoin’s February 2026 performance ended with a −14.94% monthly drop, closely echoing the near −17.39% loss recorded in February 2025. As price fell from the $100,000–$105,000 region toward the mid-$60,000 range and slid below the $89,900 Short-Term Holder Cost Basis, market stress rose, newer holders capitulated and realized losses spiked to about $4 billion–$6 billion during sharp sell-offs.

Market analyst MorenoDV_ said on February 27 that Bitcoin short‑term holders showed subdued 24‑hour exchange inflows after the US and Israel launched coordinated strikes on Iran, indicating no panic selling. This contrasts with February 5–6, when STHs sent 89,000 BTC to exchanges at a loss; BTC later traded at $67,007, up 4.41% over 24 hours.

Bitcoin briefly dropped to nearly $63,000 following US-Israeli air strikes on Iran before rebounding to about $67,000–$68,000 within 24 hours. The sharp move coincided with roughly $657 million in liquidations affecting around 157,000 traders and left markets focused on whether the Middle East conflict will intensify or settle.

On 1 March 2026 at 10:35, Bitcoin continued to trade sideways while derivatives leverage eased. The article notes that a compression in long-tilted positioning, cooler funding rates, and declining open interest point to a gradual cleanup rather than a breakdown, potentially lowering liquidation risk and setting a more stable base for the next move.

A historically reliable Bitcoin bottom indicator has appeared again, with Swissblock data showing BTC has stayed 25 straight days in an “extreme high risk” zone, longer than the 23-day stretch before the 2023 rebound of more than 130% the following year. However, weakening demand, negative 90-day ETF flows of about negative $2.06 billion and inflation readings near 2.9%–3.4% are prompting analysts to warn that any recovery could be slower and more volatile than the surge seen in 2024. Key levels flagged include $45,000 as a pivotal area, with $30,000 and $16,000 highlighted as deeper historical supports.

Bitcoin developer Martin Habovštiak embedded a 66KB image into the Bitcoin blockchain as a single transaction to test proposed BIP-110 anti-spam rules. He said the design avoided OP_RETURN, OP_IF and Taproot by using SegWit v0, and later claimed a BIP-110-compliant version would be larger, while critics questioned his definition of contiguity.

Bitcoin rose to $68,200 on Sunday morning after dropping to $63,000 on Saturday, returning to levels near $67,350 seen on Friday. Roughly 157,000 traders faced $657 million in liquidations over 24 hours, per CoinGlass, while the BBC reported Iran's Supreme National Security Council said Ayatollah Khamenei was killed.