Bitcoin Sells Off as US-Iran Conflict Escalates and Oil Prices Spike

The Bitcoin price dropped below $77,000 on Monday following renewed U.S.-Iran fighting that rattled global markets. The conflict pushed Brent crude above $90 a barrel as traders priced in fresh supply and inflation risks.

BTC fell from above $79,000 to below $77,000 in roughly an hour after the strikes were reported by The Associated Press and Reuters. This move erased more than $2,000 from the price. Wintermute sent about 5,100 BTC to Binance over two days, worth around $399 million, although exchange deposits do not prove the market maker sold those coins.

The selloff also hit Ethereum (ETH), which dropped from above $2,500 to below $2,400 as on-chain data tracked a large holder sending tens of thousands of ETH to exchanges. CoinGlass showed roughly $400 million in liquidations, with long positions absorbing most of the forced selling.

Federal Reserve Chair Kevin Warsh's hawkish Jackson Hole remarks added another macro risk for speculative assets, according to IG analyst Tony Sycamore. The oil jump could complicate the Federal Reserve's inflation fight, especially since policy may need to stay restrictive.