Bitcoin is back under pressure as the conflict between the United States (US) and Iran heats up again, triggering risk-off sentiment in global markets.
At the time of writing, the price of Bitcoin is trading at $77,142, down 0.04% since the opening of the Asian session on Wednesday.
Also recording declines were Ethereum by 2.94%, XRP by 2.97%, Solana by 4.28% and Hyperliquid by 3.25%.
US-Iran Conflict Triggers Risk-Off Sentiment
Bitcoin's decline came following the resumption of US air strikes on Iran after more than a month of suspension.
The tensions have increased concerns about disruptions to global oil supplies, particularly through the Strait of Hormuz.
Brent prices jumped 4.60% to US$94.65 a barrel, the highest level since July 24.
At the same time, US Treasury bond yields also rose. The 10-year Treasury yield rose to 4.788%, while the 30-year yield reached 5.272%.
Rising oil prices could increase inflationary pressures and give the Federal Reserve (Fed) room to maintain tight monetary policy.
This usually puts pressure on risky assets like Bitcoin.
Institutional Demand Still Strong
However, the decline in Bitcoin prices does not mean that institutional demand is weakening.
The US spot Bitcoin ETF recorded inflows of around US$3.5 billion in August, the largest monthly amount since July 2025.
Strategy also returned to buying Bitcoin, adding 4,603 BTC, worth about US$370 million.
Asset manager Strive added around 1,800 BTC to its holdings.
This shows that institutional investors still have interest in Bitcoin despite the market facing short-term pressure.
US Jobs Data in Focus
Market attention now turns to the US jobs report scheduled for September 4.
Previously published JOLTS data showed US jobless claims fell to 7.271 million in July, compared to expectations of 7.33 million.
If the jobs market continues to show signs of weakness, it could reduce pressure on the Fed to tighten monetary policy.
Bitcoin had previously surged around 25% in August, but faced resistance near the US$80,000 level.
With oil prices nearing US$95 per barrel and Treasury yields remaining high, Bitcoin could potentially continue to move erratically.
