Bitcoin Slides Under $77K as Oil Surge Overpowers Fresh ETF Inflows
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U.S.-Iran strikes sparked a risk-off move that pushed Bitcoin briefly below $77,000 and Ethereum under $2,400, triggering roughly $100 million of crypto liquidations in about 60 minutes as Brent crude rose to about $94 and the 10-year U.S. Treasury yield climbed to ~4.79%. Despite roughly $217 million of spot Bitcoin ETF inflows on Aug. 31 (BlackRock IBIT $205.9M) and about $3 billion of buying across a nine-session August streak that helped BTC gain ~24% in the month, higher oil and yields make ETF demand unlikely to fully absorb further macro shocks and leave crypto markets vulnerable.
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Bitcoin fell below $77,000 Tuesday evening and Ethereum dropped under $2,400 as renewed U.S.-Iran fighting pushed oil sharply higher and intensified a broader risk-off move across financial markets.
The latest leg lower followed fresh U.S. strikes against Iranian targets after attempted attacks on commercial shipping and U.S. personnel in the region. Iran has also retaliated, keeping the Strait of Hormuz at the center of global market concerns.
Watcher.Guru reported that roughly $100 million was liquidated from the crypto market within 60 minutes during the decline. Because liquidation totals move quickly, that figure is best treated as a point-in-time snapshot rather than a full-session number.
Bitcoin later rebounded toward $78,000 after briefly trading below $77,000, while Ethereum had earlier been around $2,445 before the sharper selloff.
<iframe src=”https://widgets.coincodex.com/w/a24bbcd3-a0c0-474c-8fb6-cd85fb114f4e?site=coinpaper&mode=light” width=”100%” height=”420” frameborder=”0” style=”border:0;background:transparent;border-radius:0px;”></iframe>Oil and Bond Yields Become the Bigger Crypto ProblemThe crypto move is notable because the geopolitical shock is feeding directly into two macro variables Bitcoin traders already watch closely: oil prices and interest rates.
Brent crude surged into the mid-$90s as traders priced greater disruption risk around the Strait of Hormuz. Reuters reported Brent around $93.93 earlier Tuesday, while other late-session market reports put it above $94.
At the same time, the 10-year U.S. Treasury yield rose to roughly 4.79%, as higher energy prices added to inflation concerns and strengthened expectations that the Federal Reserve could remain restrictive.
That combination is difficult for crypto.
Higher yields increase the opportunity cost of holding non-yielding assets such as Bitcoin, while a stronger inflation backdrop can reduce expectations for easier monetary policy. The same forces pressured the Nasdaq and other growth assets Tuesday.
ETF Demand Returns Even as Bitcoin FallsThe selloff also creates an unusual divergence between institutional demand and short-term price action.
U.S. spot Bitcoin ETFs attracted roughly $217 million on Aug. 31, reversing the previous session's outflow. BlackRock's IBIT accounted for about $205.9 million of the total. Fresh ETF inflows followed a nine-session buying streak that had already brought around $3 billion into Bitcoin funds during August.
That buying has not been enough to prevent volatility.
Bitcoin had briefly climbed above $81,000 during August before retreating toward $78,500 at the end of the month. Coinpaper's recent look at the August rally showed BTC gaining roughly 24% during the month before momentum began to cool.
The Iran conflict has already shown how quickly geopolitics can reverse crypto sentiment. Earlier in August, Bitcoin fell below $64,000 as threats around the Strait of Hormuz intensified, before recovering sharply as conditions improved.
The immediate question is now whether renewed ETF demand can absorb another macro shock.
If Brent stays near $95 and Treasury yields remain elevated, Bitcoin may continue trading less like a geopolitical hedge and more like a high-beta risk asset sensitive to inflation, liquidity and Fed expectations.
