Bitcoin Drops to $65,200 as Trump’s Cuba Remarks and Israel Tensions Shake Crypto Markets

Bitcoin price fell sharply on February 27, sliding to around $65,200 after several attempts to recover toward the key $70,000 resistance level. The sudden pullback came as geopolitical tensions escalated, rattling global financial markets and triggering renewed volatility across the cryptocurrency market.

The sell-off followed comments from US President Donald Trump suggesting the possibility of a “friendly takeover” of Cuba. Trump stated that the Cuban government is “in big trouble” and hinted that negotiations with Washington were underway. Since returning to office in January 2025, Trump has reinstated and expanded maximum pressure policies on Havana. In late January 2026, he signed an executive order declaring a national emergency related to Cuba, including potential tariffs on countries supplying oil to the island.

The policy shift effectively tightened restrictions on Cuba’s oil imports, which heavily depend on Venezuelan and Mexican fuel. Disruptions have contributed to rolling blackouts, fuel shortages, and mounting economic strain. Tensions intensified further after a deadly maritime incident involving a US-registered speedboat intercepted by Cuban forces, resulting in four deaths. While Washington denied direct involvement, investigations are ongoing.

At the same time, the US increased its military presence in Israel amid rising tensions with Iran. Advanced fighter jets were deployed, and non-essential diplomatic staff were authorized to leave the region. Although US officials describe the move as precautionary, markets are interpreting it as elevated geopolitical risk.

Bitcoin, often seen as both a risk asset and a hedge against uncertainty, reacted immediately. The cryptocurrency dropped more than 3% in 24 hours as traders reduced exposure. Historically, crypto markets initially decline during macro shocks before potentially rebounding if instability persists.

With geopolitical concerns intensifying in both the Caribbean and the Middle East, Bitcoin volatility may remain high. The next move in BTC price will likely depend on whether diplomatic efforts ease tensions or further escalation unfolds.