US-Iran Tensions Send Bitcoin Plummeting Below $77K as Ethereum Suffers Record Liquidations

Bitcoin's price slipped below $77,000 after a brief surge to nearly $79,000 on Sunday evening. The sudden drop was triggered by renewed fighting between the US and Iran, following nearly a month of relative calm. According to reports, US forces struck two Iranian launchers on the island of Larak, prompting retaliatory strikes against military targets in Jordan.

The increased geopolitical tensions sparked concerns about another energy-driven inflation shock, with Brent crude rising by nearly 3% to over $90 per barrel. In contrast, Asian stock markets declined, with Japan's Nikkei falling around 2%. The Japanese yen also weakened beyond 160 against the US dollar.

Ethereum suffered an even greater loss, plummeting from over $2,500 to under $2,400 in a single hour. Data suggests that a large ETH holder deposited approximately 41,000 coins onto exchanges, typically a sign of impending selling pressure. The sudden drop led to over $400 million in liquidations, with the majority occurring earlier in the day.