Cryptocurrency markets tumbled after the United States and Israel launched military strikes on targets in Iran on Saturday (February 28), triggering a broad retreat from risk-sensitive assets. Bitcoin briefly fell 3.8% to $63,038 before recovering slightly to trade near $64,000 by 6 am in New York. Ether, the second-largest cryptocurrency by market value, dropped as much as 4.5% to $1,836. Data from CoinGecko shows that roughly $128 billion was wiped from the total digital asset market in the immediate aftermath.

Explosions were reported in Tehran soon after the strikes began. Following the attacks, US President Donald Trump called on Iranians to replace their government once military operations conclude. Susannah Streeter, chief…