Bitcoin Tumbles Below $77,000 as Trump Announces New Strikes on Iran

Bitcoin's price took a hit on Tuesday, September 2, plummeting below $77,000 after President Trump announced renewed US airstrikes on Iranian targets near the Strait of Hormuz.

The strikes were described by Trump as large and powerful, aimed at retaliation for a failed Iranian attempt to plant sea mines in the strait, which he said have since been completely removed or detonated.

Brent crude oil prices surged in response, climbing above $91 to $94 a barrel amid fears of fresh disruptions in Hormuz, a waterway carrying a substantial share of global crude supply.

The spike in oil prices feeds inflation expectations and reduces the odds of near-term US rate cuts, an environment that has historically weighed on risk assets like Bitcoin.