Bitcoin Plummets Near $77,000 as Geopolitical Tensions Escalate
By John Nada·Feb 1, 2026·3 min read
Bitcoin has fallen near $77,000 amid heightened geopolitical tensions, particularly with Iran. Political instability in the U.S. adds to the market's woes.
Bitcoin has plunged near $77,000 as geopolitical risks intensify amid escalating U.S.-Iran tensions. The world's largest cryptocurrency fell below $78,000 on Saturday, extending its price decline into the weekend. Traders are on edge due to a combination of Middle East conflicts, U.S. political instability, and ongoing uncertainties in the crypto market. CoinDesk data shows that Bitcoin dropped more than 7% in the past 24 hours, with trading volumes dwindling, which typically heightens the risk of sudden price movements.
The decline coincided with alarming reports of an explosion at Iran's Bandar Abbas port, a critical shipping hub. This incident has reignited tensions between Tehran and Washington, leading investors to seek safer assets. Russell Thompson, Chief Investment Officer at Hilbert Group, remarked to CoinDesk, "This looks like a broad-based sell-off... Trump is sabre rattling, which isn't helping.”
Chris Soriano, co-founder and CCO of BridgePort, attributed the sharp declines to what he termed 'Phantom Liquidity' and forced deleveraging. He explained that while the market may appear healthy due to tight spreads, there is a significant lack of real depth in trading. This shallow market can result in immediate price drops when faced with forced selling, rather than gradual declines.
Political uncertainty in the U.S. has also added to market concerns. A brief government shutdown commenced over the weekend following Congress's failure to pass a funding bill. While this shutdown is expected to be temporary, it contributes to a growing list of macroeconomic worries that have traders on high alert.
Crypto-specific factors have compounded the situation. Bitcoin has struggled to sustain buying interest after a tumultuous January, with negative flows into spot Bitcoin ETFs and a derivatives market still unwinding leverage from late last year. This backdrop has led to erratic price movements and heightened vulnerability during quieter trading hours.
The question now is where the sell-off might find its next buyers. According to CoinDesk's Omkar Godbole, buyers previously emerged at around $75,000, providing support and halting a sell-off at that level last April. This makes $75,000 a critical threshold to monitor moving forward. Should it break below that, the next support level lies at the 200-week average, situated at $58,000.
Currently, Bitcoin remains rangebound, with traders closely observing whether the weekend's sell-off will attract fresh demand or lead to further declines. As geopolitical risks loom large, the outlook for Bitcoin and the broader crypto market remains uncertain. The market's response in the coming days will be telling, as traders weigh both macroeconomic pressures and internal market dynamics.