Bitcoin Retreats to $77,000 as U.S.-Iran Strikes Resume; Oil and Treasury Yields Climb in Tandem

As military tensions between the United States and Iran reignited after more than a month, Bitcoin was pushed down to the $77,000 level. Rising oil prices and U.S. Treasury yields created a classic risk-off environment that weighed heavily on the digital asset market.

As of 6:30 a.m. on September 2, Bitcoin was trading at $77,097, down 2.49% from 24 hours earlier. Ethereum fell 2.94%, while major altcoins including XRP (-2.97%), Solana (-4.28%), and Hyperliquid (-3.25%) also posted broad declines.

Market sentiment is cooling rapidly. The Fear & Greed Index compiled by crypto data provider CoinMarketCap fell to 73 (Greed) on the day, down from 75 the previous day and 80 (Extreme Greed) a week earlier—marking two consecutive days of decline. However, the index remains in "Greed" territory, suggesting that investors' underlying sentiment has not completely collapsed.

Geopolitical Risk Triggers Risk-Off Sentiment

The immediate catalyst for the decline was the resumption of U.S. airstrikes on Iran. Military operations that had been halted on July 24 under President Trump's directive restarted after roughly a month. Iran retaliated with attacks on U.S. military bases in Jordan, and reports emerged of a Saudi-flagged oil tanker being struck in waters near Oman.