Bitcoin traded near $77,900 on Aug. 31 as renewed fighting between the United States and Iran pushed oil prices higher and pressured global equity markets. The cryptocurrency remained relatively stable despite sharp moves across energy, bond and stock markets after U.S. strikes on Iran’s Larak Island.
Bitcoin holds near $78,000 as oil prices climb
Bitcoin was down approximately 0.4% over 24 hours after trading between $77,162 and $79,343. The limited move contrasted with a stronger reaction in other markets following the strikes.
An unnamed U.S. official confirmed that American forces targeted two Iranian rocket launchers. According to Reuters, the official claimed Iran’s Islamic Revolutionary Guard Corps was preparing rockets carrying sea mines for deployment in the Strait of Hormuz.
Iran said the attack killed and wounded soldiers and civilians. The Revolutionary Guards promised a “response and punishment,” but did not immediately provide casualty figures or details of further action.
Brent crude climbed approximately 2.7% to $90.51 per barrel during Monday’s Asian session. West Texas Intermediate traded near $85.23 after gaining more than 2%.
The oil price increases reflected renewed concern about shipping through the Strait of Hormuz, a key route for global oil and liquefied natural gas movements. Military activity near the waterway can therefore affect energy prices and inflation expectations.
Asian equities declined, while Nasdaq 100 futures fell between 0.5% and 0.7% across early market readings. Gold also failed to attract sustained safe-haven demand, falling approximately 0.8% to around $4,418 per ounce in the cited market snapshot.
Bitcoin remained close to $78,000. Its stability does not prove that $BTC has permanently become a geopolitical hedge, but it shows that the latest escalation did not trigger the immediate cryptocurrency sell-off seen during some earlier risk events.
Bitcoin’s daily chart also pointed to short-term strength. $BTC traded near $78,084, comfortably above the Bollinger Bands’ $72,471 midpoint but below the $86,255 upper band. The bands widened after the latest rally, indicating higher volatility.
The relative strength index stood at 69.91, just below overbought territory, after recently crossing 70. The reading reflects strong momentum but also leaves Bitcoin vulnerable to consolidation. Daily volume of about 4,200 $BTC remained below the initial breakout spike, suggesting buyers may need stronger participation to challenge $80,000.
Bitcoin ($BTC) price chart, source: crypto.news
Bitcoin also held above $62,000 during July’s U.S.–Iran strikes, even as oil, bonds and Asian stocks recorded larger moves.
Bitcoin outperformed gold and Nasdaq in August
Bitcoin gained approximately 23% during August, compared with reported advances of 9% for gold and 4% for the Nasdaq. The cryptocurrency was therefore the strongest performer among the three assets over the month.
The broader crypto market showed less resilience on Monday. XRP declined approximately 0.8%, while Solana lost around 0.6%. Ether traded near $1,625 as traders reduced exposure to several major altcoins.
Part of Bitcoin’s monthly performance followed renewed institutional demand through U.S. spot exchange-traded funds. The products accumulated approximately $2.8 billion across eight consecutive inflow sessions during the recovery from Bitcoin’s August lows.
The streak ended on Friday. U.S. spot Bitcoin ETFs recorded an estimated $201.9 million in net outflows on Aug. 28, according to Farside. The reversal indicates that ETF demand should not be characterized as uninterrupted.
Bitcoin’s rally from approximately $63,500 had previously been supported by eight consecutive ETF inflow sessions, although declining futures exposure indicated that leverage was not the only source of demand.
Federal Reserve policy adds uncertainty to Bitcoin’s outlook
The geopolitical escalation followed Federal Reserve Chair Kevin Warsh’s restrictive policy message at the Jackson Hole symposium on Aug. 28.
Warsh said inflation remained too high, while labor markets were stable and economic output was solid. According to his published remarks, he said most Federal Open Market Committee members preferred to await more information before deciding whether another policy change was appropriate.
Markets interpreted the speech as increasing the possibility of another interest-rate rise. Fed funds futures placed the probability of a September increase near 57% to 60%, up from approximately 35% before the address. The estimate represents market pricing rather than a Federal Reserve commitment.
Higher oil prices could further complicate the outlook. Sustained energy price increases can raise transportation and production costs, making it more difficult for inflation to return toward the Federal Reserve’s 2% objective.
Sept. 4 jobs report is the next major Bitcoin catalyst
The next major U.S. market catalyst is the August employment report, scheduled for Sept. 4 at 8:30 a.m. ET, according to the Bureau of Labor Statistics calendar.
Strong employment data could reinforce expectations for tighter monetary policy. A weaker report could reduce rate-hike forecasts, although the market response would also depend on wage growth and unemployment.
Bitcoin’s immediate technical range remains between support around $77,000 and resistance extending from approximately $79,400 to $80,800. These levels are market observations rather than guaranteed reversal points.
The durability of Bitcoin’s relative strength will depend on whether it remains stable if oil prices continue rising, equity losses deepen or interest-rate expectations move higher. ETF flows and the Sept. 4 labor report will provide the next evidence.
