The Bitcoin and Ethereum prices plunged sharply over the weekend as missiles flew across the Middle East, exposing just how quickly geopolitical crises can send shockwaves through the financial markets. A joint US and Israel strike on Iran triggered a violent selloff that wiped out billions of dollars from the crypto market in a matter of hours. Fresh reports now indicate that Bitcoin and Ethereum are beginning to recover. Still, with geopolitical tensions continuing to escalate, it remains uncertain whether this renewed momentum can be sustained. 

Bitcoin Price Recovers After US-Israel War Fueled Crash

Geopolitical shockwaves rattled global financial markets this past weekend as a joint US and Israeli military operation against Iran sent Bitcoin into a sharp but brief decline, wiping out millions of dollars in long positions before a partial recovery took hold. Notably, BTC plummeted to nearly $63,000 overnight following the coordinated strikes on Iranian military targets. 

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Within 45 minutes of Israel launching its assault, Bitcoin shed $2,500 in value, while more than $200 million worth of long positions were liquidated in just one hour. The broader crypto market saw roughly $72 billion wiped out amid the chaos. The sell-off was swift and severe, with major exchange players including Binance, Coinbase, and trading firm Winternute offloading more than $3.5 billion in Bitcoin within a 20-minute window. This further added downward pressure to the already declining and volatile market.

Despite the carnage, Bitcoin has since climbed back above $66,000, according to CoinMarketCap data, though volatility remains elevated as the Middle East conflict shows no signs of immediate resolution. 

Market analysts were quick to explain the technical reasons behind BTC’s price decline. One expert noted that Bitcoin did not crash for no reason. She explained that because it was the most accessible and highest volume asset that trades around the clock, it was significantly exposed to weekend fear and panic selling compared to other major asset classes. 

Ethereum Price Rebounds After Massive Sell-Off

Ethereum also took a hit alongside Bitcoin following news of the US-Israel war. ETH dropped roughly 10% within just one hour of the news breaking, falling below $1,900 and erasing all the gains it had made when it briefly touched $2,000 last week. At its lowest point, Ethereum fell to around $1,850 before rebounding back above $1,950. 

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Notably, the crash triggered sharp declines in Ethereum derivatives markets, with millions of dollars in liquidations. A large percentage of those liquidations came from long positions, suggesting that traders who had bet on Ethereum rising were hit the hardest. 

In the broader context, the Ethereum price was already experiencing a downturn, meaning the geopolitical shock had compounded an already painful downtrend for ETH holders. In addition to Ethereum, other altcoins, such as XRP, saw major sell-offs as geopolitical tensions rose.

Featured image from Pixabay, chart from Tradingview.com

The Bitcoin price has rebounded once again after initially testing the waters with a crash to $112,000. This was spurred by profit-taking as the digital asset had risen to levels not seen before back in July 2025. However, this recovery does not mean that Bitcoin is completely out of the water, especially given the fact that it has retraced to a level that would be considered bearish at this point.

Bearish FVG Could Send Bitcoin Price Crashing

In an analysis, crypto analyst Kamran Asghar revealed that the Bitcoin retrace could only be temporary and short-lived as it has moved back into a bearish Fair Value Gap (FVG). This comes after a small bounce from $112,000 toward $115,000, with this bearish FVG lying between $114,000 and $115,500.

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This fair value gap had been created following the price crash from $118,000, suggesting that the Bitcoin price would be looking to fill it again. Additionally, this level acts as a major supply zone, meaning that bulls would have to turn up the buying if the Bitcoin price is to cross this level without issue.

Given the fact that the bearish FVG and the supply zone are riding ahead of the cryptocurrency, it shows that there is a lot of resistance building at this level. Kamran suggests that the next move after hitting this supply zone would be a rejection from this level, leading to a further beating down of the price.

How Low Could BTC Go?

In the event of a hard rejection, the crypto analyst sees the Bitcoin price tumbling further downward into mid-July levels between $107,500 and $109,000. This would mean another 5% crash for the Bitcoin price before it is able to find support.

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The silver lining of this possible crash is the fact that Bitcoin has major support at this level. Thus, Bitcoin bulls could stage a rebound using this level as the next lift-off point for a recovery. Due to this, the crypto analyst warns investors to keep an eye on the digital asset to see how it reacts at this level.

Interestingly, at this time, the Bitcoin funding rate is still positive, Coinglass shows. What this means is that traders believe that the digital asset is still in a bull market, and more investors are betting on the price continuing to rise from here. However, the positive funding rate has seen some decline in the month of August, suggesting a slowdown among bulls.

Featured image from Dall.E, chart from TradingView.com