Bitcoin slips a day after posting its best monthly performance since November 2024

Bitcoin experienced a slight decline of 2.2%, settling at $77,225.3 on Tuesday, following its remarkable 25% monthly gain in August. The dip came as surging oil prices, driven by escalating tensions between the U.S. and Iran, and a global bond rout took a toll on risk sentiment. The positive momentum for Bitcoin was halted by the resumption of strikes between the two nations, with the U.S. Central Command (CENTCOM) launching limited, precise actions against Iranian Revolutionary Guard Corps (IRGC) forces in the Strait of Hormuz.

In retaliation, Iran targeted U.S. military bases in Jordan, sparking a cycle of retaliation and counter-retaliation. Amidst these geopolitical developments, concerns over Federal Reserve interest rate hikes and a disappointing reading on U.S. job openings added to the overall market uncertainty. Notably, Bitcoin's top corporate holder, Strategy, resumed its purchases of the cryptocurrency after a two-month hiatus, acquiring 4,603 coins worth approximately $368.7 million.

This purchase, funded by the sale of $602.8 million in common stock, brought Strategy's Bitcoin holdings to a total of 845,050 coins. Meanwhile, other major cryptocurrencies like Ether, XRP, BNB, and Cardano also faced losses, while memecoins Dogecoin and $TRUMP experienced smaller declines.