US-Iran Tensions Trigger Global Risk-Off Sentiment, Bitcoin Plummets Below $77,000

The US military's latest round of strikes against Iran has triggered a sharp escalation in geopolitical risk in the Middle East, sending Bitcoin plummeting below $77,000 with a daily decline of approximately 2.49%. This move marks the end of a strong August rally of roughly 25% for Bitcoin, which had risen to new heights.

The strikes against Iran were met with immediate concern from investors, who rapidly fled high-risk assets in favor of safer havens. The Crypto Fear & Greed Index slipped from 75 (Greed) the previous day to 73 (Greed), down from as high as 80 (Extreme Greed) a week earlier.

Ethereum, Solana, XRP, and other major digital assets fell across the board, with prices dropping by varying degrees. Brent Crude futures for November delivery rose 4.60% to $94.65 per barrel, while the US 10-Year Treasury yield climbed to its highest level since January 2025.

The probability of the Clarity Act passing this month has diminished, adding further uncertainty to the cryptocurrency market. Despite a strong August for Bitcoin spot ETFs, which recorded net inflows of approximately $3.5 billion, the rally encountered significant resistance near the $80,000 level.