Bitcoin briefly plunged to a low of $59,698 late on Thursday night as US officials confirmed that Israel had carried out military operations in Iran. The price of the leading digital asset quickly recovered, and was trading around $62,100 at the time of writing.

According to an Al Jazeera report, citing Iranian state media, air defence batteries had been activated after reports of an Israeli air strike near a major airbase close to the city of Isfahan.

The volatility in crypto that followed the news of the attack was a common theme across broader markets, with risk assets across the globe seeing a sharp selloff. Meanwhile, the price of oil spiked 3% as market participants priced in potential supply disruptions from the Middle East.

One thing to note amid the escalating geopolitical tensions driving markets at the moment, is the fact that a large amount of leverage was recently wiped off the market, which may have somewhat negated the impact of crypto liquidations. 

Data from Coinglass shows that around $70 million was liquidated from crypto markets in the hour that followed bitcoin’s brief trip under the $60,000 mark. However, if price slips further below the $59,000 level, more than $200 million will be liquidated across the board in digital asset markets.

The price action comes ahead of the Bitcoin halving is expected to take place between Friday and Saturday, with industry watchers anticipating that this event will be different from the ones seen in the past.

“At this halving, derivative traders exhibit far more caution than in previous instances. This season witnesses the entry of numerous new institutional players into the market,” said Crypto Quant analyst Shiven Moodley in a blog post.

“I observe derivative traders exercising caution, evident in the declining open interest and funding rates illustrated in the chart. If the price breaks below $60,000, we might witness a decline to $52,000 before a subsequent rise.”