Bitcoin Slides Under $77,000 as Geopolitical Risks and Inflation Fears Return

Bitcoin dropped below $77,000 late Sunday in U.S. Eastern time, hitting an intraday low of $76,593, Huoxing Finance reported, citing The Block. Market observers attributed the move to a rise in geopolitical risk after U.S. President Trump said on Truth Social that the United States would take military action against Iran if peace talks continue to stall. Oil prices also pushed higher, adding to inflation concerns. Brent crude rose 1.78% to $111.2 a barrel, while WTI gained 2.2% to $107.7. Traders worried that firmer energy prices could reignite inflation and increase the odds the Federal Reserve resumes rate hikes. Flows into crypto investment products weakened as well. Bitcoin ETFs posted $1 billion in net outflows last week, snapping a six-week streak of net inflows. The Fear & Greed Index fell to 27, moving into "fear" territory. Analysts said bitcoin is likely to stay tightly linked to macro moves in the near term, with $74,000 viewed as a key support level. They also pointed to upcoming policy remarks from new Fed Chair Walsh and progress on the Clear Crypto Act as key items to watch.