Bitcoin (BTC) fell below $77,000 on Monday as renewed U.S.-Iran fighting rattled global markets, while large exchange transfers added another source of selling concern.
Key Points:
- Renewed U.S.-Iran strikes pushed Bitcoin from above $79,000 to below $77,000 in roughly an hour.
- Brent crude moved above $90 as traders priced fresh supply and inflation risks.
- Wintermute sent about 5,100 BTC to Binance over two days as crypto liquidations neared $400 million.
Bitcoin Selloff
The Associated Press and Reuters reported that U.S. forces struck two Iranian launchers on Larak Island in the Strait of Hormuz on Sunday, the first known American strikes on Iran since late July. Iran responded with attacks on two U.S. bases in Jordan, ending about a month without direct military exchanges.
Brent crude rose more than 2% above $90 a barrel as Asian stocks weakened, Japan’s Nikkei dropped about 2%, and the yen moved beyond 160 per dollar after Federal Reserve Chair Kevin Warsh’s hawkish Jackson Hole remarks.
Bitcoin erased more than $2,000 after trading above $79,000 on Sunday evening. On-chain tracking showed Wintermute moving 5,100 BTC, worth about $399 million, to Binance over two days, although exchange deposits do not prove the market maker sold those coins.
The selloff also hit Ethereum (ETH), which dropped from above $2,500 to below $2,400 as on-chain data tracked a large holder sending tens of thousands of ETH to exchanges and CoinGlass showed roughly $400 million in liquidations.
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Warsh Inflation Risk
The oil jump could complicate the Federal Reserve’s inflation fight when Warsh has already signaled that policy may need to stay restrictive. Reuters cited IG analyst Tony Sycamore saying renewed escalation could push U.S. crude higher, adding another macro risk for speculative assets.
Long positions absorbed most of the forced selling, with about 99,000 traders liquidated over 24 hours and the largest single liquidation involving an ETHUSDT position worth about $6.13 million on Aster.
Bitcoin briefly moved above $80,000 last week before falling below $78,000 and then rebounding past $79,000 on Sunday. Monday’s reversal puts that recovery under pressure again.
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