Trump's Iran operation knocked Bitcoin down: it fell below $77,000.

The renewed escalation of military tensions between the U.S. and Iran has triggered sharp movements in crypto markets, just as it has in global markets. Bitcoin fell below the $77,000 level as investors pulled away from risky assets, sliding to as low as $76,388 during the day.

With the rise in geopolitical tension, oil prices also saw a rapid increase. Brent crude rose 4.6% to $94.65, while WTI crude climbed 5.2% to $90.22.

Sharp Decline in Bitcoin

The pullback in Bitcoin particularly hurt leveraged traders. According to CoinGlass data, about $115 million of long positions were liquidated in the crypto market within just one hour.

The closure of a significant portion of positions opened by investors who expected prices to rise during the decline added to selling pressure in the market.

Tensions Between the U.S. and Iran Escalate Again

The U.S. Central Command (CENTCOM) announced that U.S. forces had launched an operation against targets belonging to Iran's Islamic Revolutionary Guard Corps.

U.S. President Donald Trump said the operation was carried out in response to Iran's attempt to lay mines in the Strait of Hormuz and an attack on a U.S. base in Jordan.

Iran, in turn, responded to the operations with missiles and unmanned aerial vehicles. The Revolutionary Guard issued harsh statements that the U.S.'s new attacks would have consequences.

Strait of Hormuz Markets Get Nervous

The concentration of clashes near the Strait of Hormuz heightened concerns in energy markets. Iran's state media reported that explosions had occurred in Qeshm Island, Bandar Abbas, and Chabahar in the country's south.

Developments in the Strait of Hormuz, through which a significant portion of global oil and liquefied natural gas supplies pass, are closely monitored not only for their impact on energy prices but also on financial markets.

Oil Prices Heighten Fed Concerns

The prolonged rise in oil prices has raised concerns that inflationary pressure in the United States could intensify again. This could prompt the Federal Reserve to adopt a more cautious stance on its interest‑rate policy.

High rates and bond yields can also dampen investors’ appetite for risk assets such as Bitcoin that offer little return.

Ethereum Also Hit by the Decline

The selloff in the crypto market extended beyond Bitcoin. Ethereum, the second‑largest by market cap, fell below $2,400.

Bitcoin had posted a strong performance in August, gaining roughly 23% in value. However, rising geopolitical risks and interest‑rate concerns in the first trading days of September put selling pressure on the crypto market.

Bitcoin later recovered from the day's low and began trading at around $77,491.Below the old support level in the $78-79 thousand range.continued to stay.