Bitcoin Plummets as US-Iran Tensions and Rate Hikes Weigh Heavily

Bitcoin's recent rally came to an abrupt halt on Wednesday as renewed U.S.-Iran hostilities and rising Treasury yields weighed heavily on risk-driven assets.

The world's largest cryptocurrency plummeted 1.4% to $77,670.6 by 02:04 ET (06:04 GMT), marking a sharp reversal from its nearly 25% gain in August.

U.S.-Iran tensions escalated overnight Tuesday with both sides trading strikes and neither side showing signs of de-escalation, leading to higher oil prices and increased concern over inflation.

The Federal Reserve's potential interest rate hike also loomed large on investors' minds as they rapidly increased bets that the central bank would raise rates in September, further pressuring Bitcoin's price.