Bitcoin fell sharply on February 27, 2026, dropping over 3% in 24 hours and pulling its price back to around $65,200. The cryptocurrency had been attempting to reclaim the $70,000 level in recent sessions but reversed course as geopolitical tensions intensified on two fronts, injecting fresh uncertainty into global markets.
The primary trigger was a series of statements and actions by the United States under President Donald Trump. Speaking earlier in the day, Trump suggested the possibility of a "friendly takeover" of Cuba, framing the nation as financially desperate and open to negotiation. This comment followed weeks of escalating pressure, including an executive order signed in late January 2026 that declared a national emergency related to Cuba and threatened tariffs on any country supplying oil to the island, effectively creating an oil blockade.
Cuba, which relies heavily on Venezuelan and Mexican fuel, has faced rolling blackouts, airport fuel shortages, and widespread economic strain as a result. Tensions were further heightened after a deadly maritime incident where Cuban forces intercepted a US-registered speedboat near their territorial waters, resulting in four fatalities.
Simultaneously, the United States increased its military presence in Israel amid rising tensions with Iran. Advanced F-22 Raptor fighter jets and additional assets were deployed to the region, marking the first time such jets were sent to Israel for an operational, combat-oriented mission rather than joint exercises. The State Department also authorized the departure of non-essential diplomatic staff.
The combined headlines from the Caribbean and the Middle East prompted traders to reduce risk exposure. Market analysts note that crypto often reacts to macro uncertainty in two phases: an initial phase where liquidity tightens and prices drop, followed by a potential later phase where some investors may rotate into Bitcoin as a hedge against instability. For now, markets appear to be in the first phase, with volatility expected to remain elevated as diplomatic developments unfold.
