Bitcoin Slides Over 2% Amid Renewed US-Iran Tensions

Bitcoin slides — Bitcoin’s price fell sharply on Thursday, dropping over 2% as renewed military tensions between the U.S. and Iran sent oil prices soaring above $105 a barrel.

The cryptocurrency traded as low as $76,748, recently hovering near $77,208. The sell-off followed signals from Iran that it would not back down from conflict with U.S. forces, marking some of the heaviest fighting since the war began in February.

Heightened Middle East conflict typically pushes oil prices higher, which can stoke inflation and reduce the likelihood of interest rate cuts from the Federal Reserve. Bitcoin has historically faced pressure in a higher-rate, hawkish monetary policy environment.

Despite the recent dip, bitcoin has shown resilience this year, increasingly trading in tandem with gold as a hedge against currency debasement. This shift comes as investors seek assets outside the traditional financial system amid concerns over dollar strength and inflation.