Iran is gearing up for what may be one of the largest state funerals in its modern history. Ayatollah Ali Khamenei, who ruled the Islamic Republic for 37 years, is finally being laid to rest months after his assassination, and the geopolitical aftershocks are still reverberating through financial markets, crypto included.

Khamenei was killed on February 28, 2026, during joint US-Israeli airstrikes. He was 86 years old. Iranian state media confirmed his death the following day, March 1, triggering an immediate 40-day national mourning period and a seven-day public holiday.

A funeral delayed by war

The grand funeral ceremony, now expected to begin in early July, was pushed back for months due to ongoing military operations in the region. Preparations have intensified since late June. Large portraits of Khamenei have been installed at Tehran’s Grand Mosalla, the city’s massive prayer complex. State agencies have been coordinating what is shaping up to be a multi-day farewell ceremony, with Iranian state media suggesting at least three days of formal observances.

Khamenei ascended to power in 1989, making him one of the longest-serving leaders in the Middle East at the time of his death.

What happened to Bitcoin when Khamenei was killed

Bitcoin had been under pressure from regional tensions in the days leading up to the strikes. After the confirmation of his death on March 1, Bitcoin rebounded to approximately $68,000, effectively erasing the losses that had accumulated during the escalation.

Iran has been under heavy economic sanctions for years, and leadership transitions in the country have historically coincided with increased crypto adoption among Iranian citizens. When traditional banking channels are restricted, digital assets become a practical workaround for moving value across borders.

Current reports do not establish any direct connections between the mourning period and specific crypto market trends, aside from a general context of geopolitical uncertainty affecting market behavior.