Bitcoin Plunges as US-Iran Tensions Escalate Rate Worries

Bitcoin dropped to $77,670.6 on Wednesday, extending its losses after a strong August rally due to renewed U.S.-Iran fighting and rate jitters.

The world's biggest cryptocurrency fell 1.4% as the conflict escalated with both sides trading strikes overnight, signaling little intent to deescalate.

Higher oil prices factored into concerns over surging energy-driven inflation across the globe, leading to a surge in government bond yields and pressuring risk-driven assets like Bitcoin.

The crypto's August rally was fueled by a drop in yields, but higher rates now bode poorly for purely speculative assets such as Bitcoin.