Bitcoin Price Plunges Below $78,000 Amid Geopolitical Tensions

Bitcoin's price has been on a downward trajectory, slipping below $78,000 and reaching a low of $76,555 in early trade on September 2. However, the cryptocurrency quickly recovered some losses to trade just above $77,542 (10:18 IST), representing a 1.52 percent decline over the past 24 hours and 1.65 percent for the week.

The renewed geopolitical tensions, rising oil prices, and expectations of tighter monetary policy are weighing on broader market sentiment, causing investors to become increasingly risk-averse.

Riya Sehgal, Research Analyst at Delta Exchange, warned that higher oil prices can raise inflation expectations, while a stronger dollar and higher yields can pressure risk assets such as crypto. 'For crypto, the key risk is the impact on financial conditions,' she said.

Sehgal estimates that the short-term structure now favors sellers, with both Bitcoin (BTC) and Ethereum (ETH) trading below their key short-term moving averages. She notes that a move back above these averages would support a recovery in prices.