Bitcoin remained relatively resilient, trading mostly between $77K and $79K overnight before moving back toward $79K in early trading, demonstrating some recovery from the initial selloff triggered by President Trump's confirmation of renewed US airstrikes on Iranian targets near the Strait of Hormuz. According to KuCoin reports, the cryptocurrency showed signs of stabilization after breaking below the $77,000 level during Tuesday's session, with the token having closed Monday near $78,500 to $78,900 before the announcement. $77K–$78K remains the first key support zone, while $79K–$80K is the first confirmation area for renewed upside momentum. Latest reports indicate Bitcoin's implied volatility index has fallen to around 37.5 from the 43-46 range previously, pointing to reduced near-term hedging demand and a period of volatility compression.
Trump posted on Truth Social that "the United States is, as we speak, striking Iranian targets near the Strait of Hormuz." As reported by X, he described the strikes as large and powerful, framing them as retaliation for a failed Iranian attempt to plant sea mines in the strait, which he said have since been completely removed or detonated. Trump also cited eight Iranian missiles launched at a US base in Jordan, all of which he said were intercepted. He warned that any Iranian retaliation would trigger a response at a much harder, higher level, adding that this is not the biggest strike, which is waiting in the wings.
The U.S. 10-year Treasury yield rose above 4.75%, reaching fresh 2026 highs at around 4.77%, while market pricing for a 25bp September rate hike climbed to around 65% following Fed Chair Kevin Warsh's hawkish remarks at Jackson Hole. According to KuCoin reports, this macro pressure weighed on equities, with the Dow down 0.70%, the S&P 500 down 0.33%, and the Nasdaq down 0.12%. Oil prices also jumped significantly, with Brent crude closing overnight at $90.49/bbl and WTI rising to $85.76/bbl, amid fears of fresh disruptions in Hormuz, a waterway carrying a substantial share of global crude supply. The spike in rates and oil prices creates an environment that has historically weighed on risk assets like Bitcoin.
Bitcoin has now entered a support test under a "higher rates + higher oil" environment, compared with the rapid breakout in mid-to-late August driven by falling Treasury yields. As reported by KuCoin, if the 10-year yield stays above 4.75% and oil remains near $90, a breakout above $80K will become more difficult. However, if upcoming employment data cools rate-hike expectations, BTC could retest $81K–$82K. The Fear & Greed Index dropped to 62 from 69, reflecting increased risk-off sentiment in the market. Since the US-Iran conflict began in late February, similar escalations have repeatedly triggered selloffs, at times pushing Bitcoin below $77,000 and even toward $62,000, with spot ETFs continuing to offer institutional support despite speculative capital's sharp reactions to headlines. Bitcoin needs to reclaim $80,000 to regain momentum, while $77,000 remains key support.
