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Nearly $5 billion in bitcoin moved out of major exchange wallets within 30 minutes on Saturday as the United States and Israel launched coordinated military strikes on Iran under what the Pentagon called Operation Epic Fury.
The abrupt outflows, detected in real time by blockchain analytics firm Arkham Intelligence, were followed by widespread market liquidations, deepening a selloff that has pushed bitcoin nearly 49% below its October 2025 all-time high.
The market reaction to Operation Epic Fury unfolded quickly. According to on-chain data, Binance’s hot wallet led the withdrawals with 15,944 BTC, valued at approximately $1.05 billion at the time.
Bybit followed with roughly $897 million in bitcoin outflows, Bitfinex with $814 million, and additional large transfers traced to Kraken, Coinbase, Wintermute and FalconX within the same half-hour window.
In total, more than 154,000 traders were liquidated over 24 hours, with losses reaching $522 million as bitcoin, ethereum and other digital assets extended their decline.
The timing of the withdrawals has drawn attention because they coincided almost exactly with the launch of Operation Epic Fury, a joint U.S.-Israel military campaign targeting Iranian assets.
Israeli Defense Minister Israel Katz described the move as a “preemptive strike.” U.S. President Donald Trump later posted a video statement on Truth Social saying the United States had begun “major combat operations.”
Iran responded with reported strikes on Al Udeid Air Base in Qatar, the U.S. Navy’s Fifth Fleet in Bahrain, and military sites in Kuwait and the United Arab Emirates. Explosions were reported in Dubai and Abu Dhabi, and the UAE temporarily shut its airspace.
The geopolitical escalation during Operation Epic Fury coincided with heightened volatility in global markets. In crypto, the reaction was immediate, with leveraged positions unwound and capital rapidly moving across centralized exchanges.
On-chain analysts noted that several of the wallets involved in Saturday’s transfers had been flagged during previous episodes of extreme volatility.
On October 10, 2025, wallets associated with market maker Wintermute moved roughly $700 million in assets into Binance hours before a $19 billion leveraged long wipeout that unfolded in 90 minutes. That crash coincided with President Trump’s announcement of 100% tariffs on Chinese imports.
Two weeks ago, another $2.5 billion in bitcoin was sold within a similar 30-minute window, again traced to wallets linked to Binance, Coinbase and Wintermute.
Wintermute CEO Evgeny Gaevoy previously rejected allegations of coordinated market manipulation tied to the October episode. “Flash crash on mega leveraged market on illiquid Friday night driven by macro news,” — Evgeny Gaevoy, CEO, Wintermute.
Others have called for closer scrutiny. “Whether you love or hate crypto, there should be an investigation by regulators into Oct 10, 2025,” — Salman Banaei, former CFTC regulator.
No exchange or trading firm had publicly commented on the latest outflows linked to Operation Epic Fury at the time of publication.
Bitcoin is currently trading roughly 49% below its October 2025 peak of $126,000. Analysts are closely watching the $63,100 support level; a sustained break below that threshold could open the path toward $60,000. On derivatives platform Deribit, the largest put position — representing more than 5,200 BTC in open interest — is concentrated at the $60,000 strike price.
The Crypto Fear & Greed Index has fallen to 14, reflecting extreme fear among market participants. At the same time, U.S. spot bitcoin exchange-traded funds have reportedly flipped to net sellers this month, according to data cited by CryptoQuant, adding to downside pressure during Operation Epic Fury.
Historical precedent offers mixed signals. Following Iran’s missile strike in April 2024, bitcoin dropped to $61,000 before rebounding to new highs. After Israeli strikes on Iranian nuclear facilities in June 2025, bitcoin fell to $103,000 before climbing above $125,000 by October.
However, analysts note that the current market entered Operation Epic Fury in a more fragile state, with leverage elevated and liquidity thinner than in prior episodes.
Whether Saturday’s synchronized withdrawals represent defensive positioning, institutional risk management, or something more coordinated remains unclear. What is evident is that Operation Epic Fury has once again underscored how tightly digital asset markets are intertwined with global geopolitical developments — and how rapidly billions can move when uncertainty spikes.
For now, traders are bracing for further volatility as the fallout from Operation Epic Fury continues to unfold across both traditional and crypto markets.
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