Oil Price Surge Sends Bitcoin Below $77K Amid Iran Conflict

Bitcoin's price dropped below $77,000 on Tuesday evening due to a surge in oil prices following renewed U.S.-Iran fighting. The conflict pushed Brent crude above $93.93 and raised concerns about inflation and the potential for easier monetary policy from the Federal Reserve.

The resulting risk-off move across financial markets also affected Ethereum's price, which fell below $2,400. Watcher.Guru reported that around $100 million was liquidated from the crypto market within 60 minutes during this decline.

Fresh ETF inflows into U.S. spot Bitcoin funds did not prevent volatility in the market. On August 31, these funds attracted roughly $217 million, with BlackRock's IBIT accounting for about $205.9 million of this total.

The Iran conflict has already shown how quickly geopolitics can reverse crypto sentiment. Earlier in August, Bitcoin fell below $64,000 as threats around the Strait of Hormuz intensified before recovering sharply as conditions improved.