Bitcoin Slumps on US-Iran Tensions and Rate Jitters

Bitcoin's price dropped to $77,132.6 on Wednesday, extending losses after a strong August rally as U.S.-Iran tensions and rate jitters weighed on risk-driven assets.

The renewed fighting between the two countries contributed to higher oil prices, which in turn factored into concerns over surging energy-driven inflation across the globe.

Government bond yields rose sharply, pressuring risk-driven assets like Bitcoin. Higher rates also bode poorly for speculative assets, as the crypto's August rally was fueled by a drop in yields.