Key Summary

Bitcoin and Ethereum fell in tandem with equity weakness and a jump in Treasury yields, with BTC slipping back below its 100- and 200-hour moving averages as US-Iran escalation and rising rate-hike odds into the September 15-16 FOMC drove the move. The transmission is pure duration and risk premium: zero-yield assets reprice hardest when the front end turns hawkish, so crypto is trading as high-beta to UST yields and the NASDAQ rather than to any internal catalyst, while both assets remain sharply higher on the quarter, framing this as a drawdown inside an uptrend. Watch the K33-reported contraction in BTC spot volume as a conviction gauge and confirm whether the exchange deposits from Wintermute and an unidentified ETH whale convert into actual selling; a de-escalation headline or a softer rate path would flip the setup fastest.