Bitcoin slides below $78K as Houthi attacks on Saudi Arabia roil markets

Bitcoin ↘ 0.22% slipped below $78,000 on Tuesday for the first time since September 3, as a spike in crude oil prices and falling U.S. equities dragged risk assets lower on the first full trading day after the Labor Day holiday.

The selloff came after Houthi rebels launched a barrage of missiles and drones at Saudi Arabian energy infrastructure and civilian sites early Tuesday, wounding at least 73 people. The attacks targeted Aramco facilities, airports, and military installations across southern Saudi Arabia, according to Anadolu Agency. The Saudi Energy Ministry said the strikes ignited fires at several facilities and temporarily halted some operations.aljazeera+2

Oil Jumps, Equities Slide

Oil markets reacted sharply. WTI crude climbed above $93 per barrel on Monday and continued rising Tuesday, while Brent crude approached $98 — both at multi-week highs. CNN reported that global oil prices rose more than 1% following Tuesday's Houthi strikes alone, with traders worried that Saudi crude shipments through the Red Sea could be disrupted.cnbc+2

U.S. stock markets opened lower. The S&P 500 fell roughly 0.5% and the Nasdaq Composite dropped about 0.4% in early trading, according to market data cited by KuCoin. Goldman Sachs raised its Brent and WTI forecasts by $5 per barrel on Monday, reflecting the deteriorating geopolitical picture.kucoin+1

Bitcoin's Technical Test

According to data from Investing.com, BTC/USD traded as low as $77,666 on Tuesday before attempting a modest recovery. The drop put Bitcoin squarely at a level that analyst Rekt Capital has flagged as pivotal. In a post on X, Rekt Capital said the market is "copying" the pattern that followed a failed breakout in May, when Bitcoin consolidated around $78,300 before eventually falling to macro lows near $57,000.investing+1

Rekt Capital warned that a weekly close below $78,300, followed by a bearish retest, would "likely confirm a breakdown." He framed the current weakness as part of a bear-market structure stretching back to October 2025.kucoin+1

Inflation Fears Loom Over Friday's CPI

The oil surge has sharpened focus on Friday's U.S. Consumer Price Index release. Higher energy costs feed directly into inflation expectations, which can pressure speculative assets by raising the prospect of tighter monetary policy. Trade publication The Kobeissi Letter noted that rising diesel costs are already contributing to building "inflation expectations".kucoin

President Donald Trump sought to temper concerns in a Truth Social post on Monday, writing that "oil prices will drop precipitously". For now, markets are trading the data in front of them — and the data points to rising energy costs and a key technical level for Bitcoin that has yet to hold.kucoin