Bitcoin fell below the $77,000 mark on Monday as risk sentiment weakened among investors. The world’s largest cryptocurrency extended its weekend declines as global bond yields and oil prices surged on tensions in the Middle East.
As of 6:04 GMT, Bitcoin was down 0.70 percent to $76,873. The extended decline comes after the cryptocurrency briefly climbed above $80,000 last week.
Inflation, rate hike risks pressure crypto market
Bitcoin continued to decline as investors reduced their exposure to risk-sensitive assets amid growing concerns that surging energy prices could reignite global inflation and force central banks to keep interest rates higher for longer.
Oil prices also rose above $110 a barrel on Monday amid a lack of progress in diplomatic efforts surrounding the Iran war. The spike in energy costs sparked a widespread selloff in government bonds, pushing the benchmark U.S. 10-year Treasury yield to its highest level since early 2025.
Markets have also reduced their expectations for Federal Reserve rate cuts, with traders now anticipating rates to remain largely steady through most of 2026. Futures markets have also started pricing in increasing odds of another rate hike later this year.
Bond yield surge attracts investors
Higher bond yields weighed on cryptocurrencies and other growth-oriented assets on Monday by making safer fixed-income investments more attractive to investors.
On Sunday, U.S. President Donald Trump warned that time is running out for Iran to strike a deal with Washington, fuelling fears of a broader regional conflict and prolonged disruptions to key global oil supply routes.
Most cryptocurrencies tracked Bitcoin lower on Monday, with Ether losing 3.03 percent to $2,118.74, and XRP falling 2.26 percent to $1.3855.
Solana dipped 2.29 percent to $84.840, while Cardano fell 2.5 percent to $0.2491 and Polygon dipped 1.20 percent to $0.0906.
