Bitcoin Reverses Weekend Rally After Iran Conflict Returns To Markets

Bitcoin (BTC) fell below $77,000 on Monday as renewed U.S.-Iran fighting rattled global markets, while large exchange transfers added another source of selling concern.

Key Points:

• Renewed U.S.-Iran strikes pushed Bitcoin from above $79,000 to below $77,000 in roughly an hour.
• Brent crude moved above $90 as traders priced fresh supply and inflation risks.
• Wintermute sent about 5,100 BTC to Binance over two days as crypto liquidations neared $400 million.

Bitcoin Selloff

The Associated Press and Reuters reported that U.S. forces struck two Iranian launchers on Larak Island in the Strait of Hormuz on Sunday, the first known American strikes on Iran since late July. Iran responded with attacks on two U.S. bases in Jordan, ending about a month without direct military exchanges.

Brent crude rose more than 2% above $90 a barrel as Asian stocks weakened, Japan’s Nikkei dropped about 2%, and the yen moved beyond 160 per dollar after Federal Reserve Chair Kevin Warsh’s hawkish Jackson Hole remarks.

Bitcoin erased more than $2,000 after trading above $79,000 on Sunday evening. On-chain tracking showed Wintermute moving 5,100 BTC, worth about $399 million, to Binance over two days, although exchange deposits do not prove the market maker sold those coins.