Bitcoin Drops Below $77,000 Amid Iran-US Tensions, Quickly Recovers

Bitcoin experienced a sharp but brief decline on Monday, August 31, 2026, falling below $77,000 before quickly recovering, as escalating military tensions between the United States and Iran rattled global financial markets. The cryptocurrency dropped more than 2% to a low of $77,161 following Iran's ballistic missile launch at U.S. military bases in the Middle East, a retaliation for American strikes on Iranian missile launchers on Larak Island in the Strait of Hormuz. Bitcoin subsequently rebounded to trade near $78,623, demonstrating notable resilience amid the geopolitical shock. The market turbulence began after U.S. forces conducted what the U.S.