Bitcoin fell on Thursday, extending recent losses as a sharp rally in oil prices and higher U.S. Treasury yields kept investor appetite for risk-sensitive cryptocurrencies subdued.
The world’s largest cryptocurrency fell 1.10 percent to $82,362 after briefly touching a near three-week low of $82,300.50 earlier in the session.
Broader cryptocurrency prices also declined, with the sector facing increased profit-taking following an extended rally through the September quarter. Fresh buying by Strategy Inc., the world’s largest corporate holder of Bitcoin, did little to stem the cryptocurrency’s losses this week.
Mideast tensions persist
Oil prices surged on Thursday following a report that the U.S. was considering renewed military action against Iran, while a prolonged standoff in the Strait of Hormuz continued to disrupt shipping.
Iran has also intensified attacks on shipping in the waterway over the past week, pushing traffic through the strategic route to its lowest level in more than two months.
The sharp rise in oil prices has heightened concerns that energy-driven inflation could put further pressure on global economies and prompt major central banks, particularly the U.S. Federal Reserve, to maintain or resume monetary tightening.
Minutes from the Fed’s September meeting, released overnight, showed policymakers broadly adopting a more hawkish stance amid concerns over rising inflation.
The shift drove Treasury yields higher, with the benchmark 10-year yield reaching a fresh 24-year high on Wednesday. Higher yields tend to weigh on Bitcoin and other cryptocurrencies by reducing the relative appeal of speculative, risk-sensitive assets compared with interest-bearing debt.
Solana falls despite Samsung partnership
Solana also declined despite announcing a partnership with Samsung that will enable support for stablecoins through Samsung Wallet and Samsung Pay.
The agreement will allow Samsung Wallet users in the U.S. to conduct cross-border transactions using USDC, starting in late October.
The partnership adds to Solana’s growing integration with stablecoins and traditional financial services, with payment companies including PayPal and Western Union already using the blockchain for stablecoin activity.
Despite the development, Solana’s native token fell 3.15 percent on Thursday as the broader crypto market tracked Bitcoin lower.
Ether, the world’s second-largest cryptocurrency, fell 1.59 percent to $2,532.81, while XRP declined 3.61 percent to $1.3928.
Cardano dropped 2.21 percent and BNB edged down 1.09 percent.
Among memecoins, Dogecoin fell 2.15 percent, while $TRUMP eased 0.07 percent.
