Bitcoin Slides Below $77,000 as ETF Outflows Hit $236 Million, But Altcoin Funds Draw Fresh Capital

Cryptocurrency markets extended their losing streak on Tuesday as a confluence of geopolitical tension and shifting monetary policy expectations pushed Bitcoin below the $77,000 mark, even as institutional money showed signs of rotating into select alternative tokens.

Bitcoin traded at approximately $76,500, down roughly 2% over the prior 24 hours, according to market data. The decline came as US military strikes on Iranian targets near the Strait of Hormuz drove oil prices to a 40-day high and lifted the 10-year Treasury yield to around 4.81%, near its highest level in recent years. Futures markets now price a 66% to 70% probability that the Federal Reserve will raise interest rates at its September meeting, a shift that has dampened appetite for risk assets across the board.

The selling pressure was not confined to the largest cryptocurrency. Ethereum fell about 3% to $2,420, while XRP dropped 3.18% to $1.35 and Solana declined 3.88% to $100.20. Total crypto market capitalization slid 1.68% to $2.61 trillion.

ETF Flows Reveal a Selective Rotation

The clearest signal of institutional caution came from spot Bitcoin exchange-traded funds, which recorded $236.46 million in net outflows on September 1. The exodus marked one of the more significant single-day withdrawals in recent weeks and underscored how quickly sentiment has soured among large investors.