Iran’s military leadership has vowed armed retaliation following the killing of Supreme Leader Ali Khamenei in a coordinated US-Israeli airstrike on February 28, 2026. The strike targeted Khamenei’s compound in Tehran, killing the 86-year-old leader along with several family members and other senior Iranian officials.
The crypto market’s reaction was swift and violent. Bitcoin plunged to approximately $63K in the immediate aftermath before staging a recovery to around $68K. Meanwhile, digital asset outflows from Iranian crypto exchanges surged by up to 700%, reaching roughly $3 million in reported outflows as citizens scrambled to move capital out of the country’s financial ecosystem.
What happened in Tehran
Khamenei had served as Iran’s Supreme Leader since 1989, making him one of the longest-serving heads of state in the Middle East. Iranian authorities confirmed his death on March 1, 2026, one day after the strikes.
The operation also eliminated several other senior Iranian officials, marking what amounts to the most significant escalation in US-Iran tensions in decades.
