Oil Surge Sends Bitcoin Below $77K Amid Iran Conflict
Bitcoin's price fell below $77,000 on Tuesday evening, while Ethereum dropped under $2,400. The decline was triggered by renewed U.S.-Iran fighting, which pushed oil prices sharply higher and intensified a broader risk-off move across financial markets.
The U.S. strikes against Iranian targets followed attempted attacks on commercial shipping and U.S. personnel in the region. Iran has retaliated, keeping the Strait of Hormuz at the center of global market concerns.
According to Watcher.Guru, around $100 million was liquidated from the crypto market within 60 minutes during the decline. However, this figure is a point-in-time snapshot and not a full-session number.
The crypto move is notable because the geopolitical shock is feeding directly into two macro variables that Bitcoin traders watch closely: oil prices and interest rates. Brent crude surged into the mid-$90s as traders priced greater disruption risk around the Strait of Hormuz, while the 10-year U.S. Treasury yield rose to roughly 4.79%.
Higher yields increase the opportunity cost of holding non-yielding assets such as Bitcoin, while a stronger inflation backdrop can reduce expectations for easier monetary policy. This combination is difficult for crypto and has already pressured the Nasdaq and other growth assets.