Bitcoin fell on Monday, extending losses from the weekend as surging government bond yields and limited progress toward a U.S.-Iran peace deal weighed on appetite for riskier assets.
The world’s largest cryptocurrency fell 1.74 percent to $82,987 by 7:53 GMT. The decline came after Bitcoin posted two consecutive weeks of gains, supported in part by optimism around potentially favorable U.S. cryptocurrency regulations.
Broader crypto markets also moved lower on Monday, with several major tokens tracking Bitcoin’s decline.
Rising yields weigh on crypto
Government bond yields climbed globally as markets increasingly bet that major central banks will maintain a hawkish stance to contain persistent inflation.
The 10-year U.S. Treasury yield rose above 5 percent, reaching levels last seen in 2007, while Japanese government bond yields climbed beyond 30-year highs.
The rise in yields followed a series of interest rate increases in September and signals from major central banks that further tightening could be needed amid concerns over sticky inflation.
Both the U.S. Federal Reserve and the Bank of Japan raised interest rates in September and indicated that additional moves could follow.
Higher interest rates typically weigh on speculative and non-yielding assets such as cryptocurrencies by tightening liquidity and making government bonds more attractive to investors seeking relatively safer returns.
Iran tensions add to market pressure
Rising energy prices linked to the U.S.-Iran conflict have added to inflation concerns, while the ongoing standoff over the Strait of Hormuz has weighed on broader risk sentiment.
U.S. President Donald Trump did not rule out further military action against Iran in a weekend interview, after previously rejecting a peace proposal from Tehran.
Although negotiations between the two sides remained ongoing, there were few signs of progress toward a concrete peace agreement.
Continued hostilities involving Yemen’s Iran-backed Houthis and Saudi Arabia also supported oil prices, reinforcing concerns about further energy-driven inflation.
Read: Bitcoin ETFs swing to $800 million in inflows after $5.8 billion outflows
Crypto market fall alongside Bitcoin
Major cryptocurrencies declined on Monday as investors took profits following two weeks of gains. Ether, the world’s second-largest cryptocurrency, fell 2.58 percent to $2,648.22.
XRP declined 4.17 percent, while Solana fell 4.63 percent and Cardano dropped 5.8 percent. BNB was down 2.25 percent.
Among memecoins, Dogecoin fell 5.41 percent, while the TRUMP token declined 7.56 percent.
The broader crypto pullback came as investors assessed the impact of higher borrowing costs, elevated energy prices and continued geopolitical uncertainty on risk-driven markets.
