Bitcoin fell below $77,000 on Tuesday after fresh U.S. strikes in Iran weakened hopes for a near-term peace agreement and triggered renewed selling across cryptocurrency markets.
The world’s largest cryptocurrency traded 0.6% lower at $76,946.7 by early U.S. trading hours, according to Investing.com data.
The decline followed renewed military action in southern Iran and weaker demand for U.S. spot Bitcoin exchange-traded funds.
The United States said the strikes targeted missile launch sites and mine-laying vessels in southern Iran. Officials described the attacks as defensive operations that did not end ongoing ceasefire discussions with Tehran.
Investor sentiment weakened as traders moved toward traditional safe-haven assets, including the U.S. dollar and gold.
Oil prices also rebounded nearly 2% in Asian trading, increasing concerns about inflation and interest rates.
Bitcoin has traded sharply on Middle East headlines throughout May, swinging between optimism over a possible U.S.-Iran agreement and fears of further escalation.
ETF demand, which helped support Bitcoin earlier this year, also showed signs of slowing. Recent U.S. spot Bitcoin ETFs recorded net outflows after strong institutional buying during the previous quarter.
Read: Iran Crypto Network Moved $850 Million, WSJ Says
Analysts said elevated Treasury yields and persistent inflation concerns continued to pressure digital assets as traders reduced expectations for near-term Federal Reserve rate cuts.
Markets are now focused on Thursday’s U.S. Personal Consumption Expenditures index, the Federal Reserve’s preferred inflation gauge, for further clues on interest-rate policy.
Most major altcoins also declined. Ethereum fell 0.3% to $2,101.75, while XRP dropped 0.7% to $1.35. Solana lost 1.4%, Cardano slipped 0.7%, and Dogecoin declined 1.3%. Polygon was the only major token in positive territory, rising about 1.4%.
