Crypto prices fell again on February 27 as fears of a possible US strike on Iran rattled global markets.
Bitcoin dropped below $66,000, while the total crypto market value slid about 2.8% to around $2.28 trillion. Several altcoins posted sharper losses, with some tokens falling more than 6% in 24 hours.
The sell-off came as geopolitical tensions in the Middle East intensified. Reports said non-essential US embassy staff in Jerusalem were told to leave, raising speculation that the United States could be preparing for military action against Iran.
Traders on Polymarket pushed the odds of a US attack in March above 70%. Iran has previously warned it would retaliate against US bases in the region and could move to disrupt the Strait of Hormuz, a key oil route.
Analysts say a wider conflict could push oil prices higher and fuel inflation. That would make it harder for the Federal Reserve to cut interest rates. Higher rates tend to pressure risk assets like crypto.
The drop also followed a short rebound earlier in the week. Bitcoin had climbed from around $63,000 to near $68,000 before turning lower again. Some traders now see that bounce as profit-taking rather than a full recovery.
Crypto’s decline mirrored losses in traditional markets. The Dow Jones Industrial Average fell more than 500 points, while the S&P 500 and Nasdaq 100 each dropped over 1%.
Fresh US inflation data added to the pressure. The latest Producer Price Index rose 0.5% in January, higher than expected, reinforcing concerns that borrowing costs could stay elevated for longer.
With geopolitical risks rising and macro pressures building, traders expect volatility to remain high across crypto and stock markets.
