Bitcoin slides below $78K as U.S.-Iran strikes spook global markets

Bitcoin ↘ 0.86% slid below $78,000 on Monday after renewed U.S.-Iran military strikes and hawkish Federal Reserve rhetoric combined to rattle global markets. The cryptocurrency fell from above $79,000 late Sunday to an intraday low near $77,400, erasing a weekend rebound as traders moved away from risk assets.investing+1

Geopolitical Shock Meets Rate Anxiety

U.S. forces struck two Iranian rocket launchers on Larak Island in the Strait of Hormuz on Sunday, the first publicly confirmed American strikes on Iran in over a month, according to U.S. Central Command. Iran retaliated with strikes on U.S. bases in Jordan, reigniting a conflict that had paused as Washington pursued economic pressure.time+1

President Donald Trump amplified uncertainty by posting an AI-generated video appearing to show explosions on Kharg Island, Iran's main oil export hub, though Reuters reported no confirmation of a strike there. Treasury Secretary Scott Bessent signaled plans for additional economic sanctions on Tehran.bitcoinfoundation+1

Brent crude surged above $90 a barrel on supply fears, while Japan's Nikkei 225 fell roughly 2% and the yen weakened past 160 per dollar. U.S. and European stock futures also declined.yellow+1

The selloff compounded pressure from Fed Chair Kevin Warsh's Jackson Hole speech on Friday, in which he said inflation remained above the 2% target and that financial conditions could "hardly be described as restrictive". Markets are now pricing in roughly a 60% chance of a 25-basis-point rate hike in September, according to CME FedWatch data.investing+2

Large On-Chain Transfers Add Pressure

On-chain data showed market maker Wintermute deposited about 5,100 BTC — worth close to $400 million — to Binance ↗ 0.16% over two days, a move commonly associated with potential selling. A separate whale or institution deposited nearly 41,000 Ethereum ↘ 1.52%, valued at over $100 million, to exchanges.cryptopotato+1

The sharp decline triggered over $400 million in liquidations within 24 hours, with more than 100,000 leveraged trading accounts wiped out, according to CoinGlass. The largest single liquidation was a $6.12 million ETH position on Aster.bitcoinfoundation+2

August Gains Intact — For Now

Despite Monday's drop, Bitcoin remained on track for a gain of roughly 24% in August, its strongest monthly performance of 2026, buoyed by $2.8 billion in net inflows to U.S. spot Bitcoin ETFs over the prior two weeks. Traders now look to Friday's nonfarm payrolls report for further cues on the Fed's rate path.bloomingbit+1