Iran Tensions Send Bitcoin Plummeting Below $78k

Bitcoin dropped to $78,299.6 on Thursday as investors grew cautious due to escalating tensions between the US and Iran.

The conflict led to a surge in oil prices, which has added pressure to interest rates, causing Treasury yields to rise. This trend is concerning for risk-driven assets like Bitcoin, as it typically underperforms during Federal Reserve rate hike cycles.

Iran's military said it struck 10 ships in and around the Strait of Hormuz, while the US retaliated by sinking five Iranian oil tankers. The development caused Brent crude to remain above $100 a barrel, further fueling inflation concerns and increasing hawkish expectations for the Fed.