Bitcoin Weakens Around $77,500 as US-Iran Clash Sends Solana, Tron Down More Than 3%

Major cryptocurrencies, including Bitcoin, traded lower as risk aversion spread after US airstrikes on Iran.

CoinDesk reported that Bitcoin was trading around $77,500 during Asian hours on September 2. The token was down about 1% over the past 24 hours, a smaller decline than major altcoins such as Solana and Tron.

Altcoins posted steeper losses. Solana fell more than 3% to about $100, while Tron dropped more than 3% to $0.32. Ether traded near $2,414, down 2%, and XRP changed hands around $1.35 after slipping about 2%. Dogecoin and Hyperliquid also fell about 2% and 1%, respectively. BNB was relatively resilient, with a loss of less than 1%.

The weakness appeared to stem less from crypto-specific factors than from a jump in oil prices and Treasury yields after military conflict between the US and Iran resumed. Brent crude rose above $95 a barrel as concerns grew over potential disruptions to oil shipments through the Strait of Hormuz.

US Treasury yields also surged. The 10-year Treasury yield climbed as high as 4.81% intraday, the highest level in about three years. Japan's 10-year government bond yield also reached 3% for the first time in 30 years. Japanese stocks fell more than 2%, while South Korea's Kospi dropped more than 3%, underscoring a broader flight from risk across Asian equity markets.

Rising oil prices also fueled inflation concerns and strengthened expectations of a Federal Reserve rate increase in September. CME FedWatch showed markets pricing in a 66% chance of a September hike, up sharply from about 40% a week earlier. The shift followed recent remarks by Fed Chair Kevin Warsh at Jackson Hole that monetary policy may not be restrictive enough to bring inflation under control.

Joel Kruger, a market strategist at LMAX Group, identified Bitcoin's key upside range at $80,000 to its May high of $82,820. Analysts at Bitfinex said Bitcoin could come under further pressure if the broader correction in risk assets deepens.

Investors are also watching the US August jobs report due on September 4. Markets expect nonfarm payrolls to increase by about 55,000. A stronger-than-expected reading could add momentum to bets on a September rate hike and curb any short-term rebound in cryptocurrencies, including Bitcoin.