Bitcoin Plunges Below $77,000 Amid US-Iran Tensions and Rate Jitters

Bitcoin slipped below $77,000 on Wednesday as renewed US-Iran tensions and rate jitters dampened investor appetite for risk-driven assets.

The world's largest cryptocurrency fell 0.9% to $77,387.6 by 09:46 ET (13:46 GMT), bringing an end to its strong monthly gains in August.

The crypto market's rally in August was driven by a decline in yields, but investors' concerns over inflation and interest rates have since shifted focus towards the potential for Federal Reserve rate hikes.

The US-Iran conflict has sparked higher oil prices, which in turn fueled concerns about energy-driven inflation globally. Government bond yields across major economies surged, further pressuring risk-driven assets like Bitcoin.