Bitcoin recorded a massive $1.8 billion in sell volume within a single hour on February 28, 2026, as escalating geopolitical tensions between the United States, Israel, and Iran sent shockwaves through the cryptocurrency market. The sell-off flooded the derivatives market, with aggressive market orders hitting order books and signaling a rapid shift to extreme bearish sentiment.
The trigger was a significant escalation in the Middle East. Reports indicated that United States President Donald Trump announced "major combat operations" in Iran following confirmed missile strikes by Israel. Iran responded by targeting Israeli and US assets across several countries, including Qatar, the UAE, Kuwait, Bahrain, Syria, Jordan, and Iraq. As news of explosions in Tehran circulated, financial markets reacted instantly.
The market impact was severe and immediate. Bitcoin, which had recently traded near $70,000, plunged into the $60,000–$62,000 range. Crypto analytics platform CryptoQuant revealed that Bitcoin's key Derivatives Market Pressure Index collapsed from around 30% to approximately 18% in under an hour, pushing sentiment deep into "High Bear" territory. This indicated a swift flip from neutral to extreme bearish positioning, driven by futures-driven flows and risk aversion.
The data showed seller dominance in the market, with traders focused on limiting exposure. The rapid compression in the derivatives index pointed to forced repricing, defensive hedging, and accelerated liquidations, which were amplified by thin liquidity conditions. Veteran trader Matthew Dixon noted on social media platform X that the development triggered a sharp selloff across Bitcoin and broader crypto markets.
Despite the panic, some market watchers retained optimism, noting that such extreme one-sided positioning can sometimes create conditions for a short-term rebound. However, with headlines continuing to unfold, timing any potential relief bounce remains highly uncertain.
