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Bitcoin rebounds after Iran strikes wipe $128B from market

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Will the crypto market recover as the sell-off intensifies?

Bitcoin fell to $63,062 before recovering to $66,201 following reports of large explosions in Tehran as the United States and Israel launched strikes across Iran.

Summary

  • Bitcoin dropped to $63K on Iran strike news before rebounding above $66K.
  • Crypto market lost $128B in panic selling as missiles hit Middle East.
  • UAE intercepted missiles safely as BTC and ETH recovered from lows.

Ethereum (ETH) dropped to $1,837 before rebounding to $1,940. As per the data at the time of the attack, the crypto market erased approximately $128 billion in value in the immediate aftermath.

Iran launched retaliatory missiles at multiple locations including Israel, Qatar, the United Arab Emirates, and Bahrain.

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They also threatened further strikes against U.S.-linked bases in Iraq.

The UAE Ministry of Defence successfully intercepted Iranian missiles without damage or injuries, though fragments fell across Abu Dhabi.

Bitcoin and Ethereum recover from intraday lows

Bitcoin (BTC) traded in a 24-hour range of $63,062 to $66,108 before settling at $66,201. The asset gained 1.12% over one hour and 1.28% over 24 hours. The intraday low of $63,062 is a 4.6% drop from the 24-hour high.

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Ethereum’s 24-hour range spanned $1,837 to $1,946, with the current price at $1,940. The asset posted gains of 1.42% over one hour.

Both assets demonstrated quick recovery from initial panic selling as markets assessed the scope of the military action.

Bitcoin reclaimed the $66,000 level while Ethereum held above $1,900 after testing support below $1,850.

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Regional missile exchanges cause risk-off sentiment

The strikes began Saturday with explosions reported in Tehran. U.S. President Donald Trump urged Iranians to overthrow the government once the military campaign concludes.

Hours after the initial strikes, Iran launched missiles targeting Israel, Qatar, UAE, and Bahrain.

The UAE Ministry of Defence intercepted the new wave of Iranian missiles launched toward the country.

Fragments of intercepted missiles fell across several parts of Abu Dhabi including Saadiyat Island, Khalifa City, Bani Yas, Mohammed bin Zayed City, and Al Falah. No injuries were reported.

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The ministry affirmed readiness to deal with any threats and stated it is taking all necessary measures to counter anything aiming to undermine the country’s security and stability.

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Crypto World

Brazil’s New Finance Minister Puts Crypto Tax Policy on Pause: Report

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Taxes, Brazil

Brazil’s Finance Minister, Dario Durigan, is putting crypto tax policy on the back burner until after the country’s presidential elections in October 2026 to avoid pushing for “divisive” tax changes during an election year. 

Regulators and government officials originally slated a public consultation on crypto tax policy for later this year, which may be delayed until 2027, but still “remains on the radar,” sources familiar with the matter told Reuters.

Brazil ended its no tax policy on gains from smaller cryptocurrency sales or transfers in June 2025, shifting to a 17.5% flat tax on crypto capital gains, including those made from offshore and self-custodial holdings.

Under the previous rules, residents who sold up to 35,000 Brazilian real, equivalent to about $6,587, per month were exempt from capital gains taxes on any profits, and investors who surpassed this threshold were subject to progressive tax rates between 15% and 22.5%.

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In November 2025, Banco Central do Brasil, the country’s central bank, published rules that treat stablecoin transfers as foreign currency exchange, subject to the same tax laws.

The Brazilian government is also eyeing proposals to tax cryptocurrencies used for international payments and is aligning its reporting rules to be consistent with regulations under the Crypto-Asset Reporting Framework (CARF), an international monitoring standard for crypto transactions.

The decision to place the crypto tax consultation on hiatus comes during a time when the South American country is rapidly adopting crypto, and the industry is growing in Brazil.

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Related: Brazil’s Pix instant payment system expands to Argentina

Brazil is one of the top countries in the world for crypto adoption

Brazil ranks number five on Chainalysis’s crypto Global Adoption Index and ranks number one in terms of adoption in the Latin America region.

Taxes, Brazil
Brazil ranks number five globally in terms of crypto adoption. Source: Chainalysis

The country has a population of over 213 million people, with a median age of 33.5 years, and over 91% of the population lives in urban areas, according to data from Worldometer.

In 2025, “Latin America’s crypto adoption grew by 63%, reflecting rising adoption across both retail and institutional segments,” according to Chainalysis.

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