Bitcoin soared to $68,000 early Sunday, recovering almost all of Saturday’s war losses hours after Iranian state television confirmed that Supreme Leader Ayatollah Ali Khamenei had been killed in U.S. and Israeli airstrikes.
Khamenei held ultimate authority over Iran’s military, foreign policy and nuclear program. Under Iran’s constitution, a temporary council composed of the president, the head of the judiciary and a jurist from the Guardian Council assumes leadership functions until the Assembly of Experts appoints a successor.
US President Donald Trump, meanwhile, urged the Iranians to overthrow the regime, calling it “probably their only chance for generations.” Tehran continues to fire missiles at Israel and Israeli strikes against Iran continue. It is not yet clear whether a period of mourning affects military operations.
Trump added that US attacks would continue for as long as necessary.
But Bitcoin moved before any of these questions were answered. The move from $64,000 to $68,000 occurred on Sunday due to low liquidity, driven by a single stock. This represents a market capitalization change of around $80 billion in a few hours.
What is emerging from the crypto and broader risk markets is that a leadership vacuum makes a ceasefire more likely than continued escalation, creating a rapid flight into risk assets.
Oil and stock futures open later on Sunday, and tracking their movements could indicate whether optimism persists or whether Sunday’s rebound fades in the same way as Wednesday’s push to $70,000.
Iran is at the center of a region responsible for about a third of global crude exports. If markets interpret Khamenei’s death as increasing the likelihood of regime destabilization or disruption of supply routes, energy prices could soar, putting pressure on global inflation expectations and tightening financial conditions. This would generally weigh on risky assets, including cryptocurrencies.
However, if traders believe that succession mechanisms will stabilize decision-making and avoid a broader war, risk assets could continue to find support.
