Bitcoin Dumps Below $77K as US-Iran Strikes Resume: Who Else Might Be Behind the Drop?

The liquidations topped $200 million within an hour once the entire market headed south suddenly.

After jumping past $79,000 on Sunday evening, bitcoin entered the new business week on the wrong foot, slipping below $77,000 in an hour or so as geopolitical tensions returned to financial markets.

The decline came amid renewed fighting between the United States and Iran, following nearly a month of relative calm as the US reportedly focused only on increasing economic pressure. US Forces struck two Iranian launchers on the island of Larak on Sunday, while the latter retaliated with strikes against military targets stationed in Jordan.

US President Trump’s AI video of how Kharg Island, Iran’s key oil region, is being “blown to smithereens” didn’t help defuse the situation either.

Oil Up, Asian Markets Down

Brent crude reacted immediately with a near-3% surge to over $90 per barrel, reviving concerns about another energy-driven inflation shock. This is particularly worrisome following Fed Chair Kevin Warsh’s hawkish speech at Jackson Hole on Friday, as higher oil prices deteriorate the inflation picture.

In contrast to oil, Asian stock markets headed south after the attacks went public, with Japan’s Nikkei falling by roughly 2%. South Korea’s Kospi and Chinese equities also turned red, while US and European stock futures followed suit. The Japanese yen weakened beyond 160 against the greenback.