Bitcoin Slides to $77,100 as Iran Tensions and Surging Bond Yields Spook Investors

Bitcoin fell on Thursday, pressured by a risk-off sentiment in global markets driven by escalating geopolitical tensions and soaring U.S. Treasury yields. The world's largest cryptocurrency dropped 2.6% to trade at $77,180.6 as of 9:45 AM ET, according to data from Investing.com.

Dual Headwinds Pressure Crypto Markets

Investor sentiment was dampened by a significant escalation in the U.S.-Iran conflict, which saw the most intense exchanges this week since the conflict began in late February. Iran claimed responsibility for attacks on 10 vessels near the Strait of Hormuz, while the U.S. reported sinking five Iranian oil tankers in response. The turmoil has kept Brent crude oil prices firmly above $100 a barrel.

Sustained high oil prices are fueling concerns about persistent energy-driven inflation, leading to market expectations that the U.S. Federal Reserve will maintain a hawkish monetary policy. This sentiment has pushed U.S. Treasury yields sharply higher, with the 10-year note hitting a three-year high. Higher interest rates typically weigh on speculative, non-yielding assets like Bitcoin by increasing the opportunity cost of holding them.

Altcoins Follow Bitcoin Lower

The downturn was felt across the digital asset space, with most major altcoins posting significant losses in tandem with Bitcoin. The sell-off indicates a broad retreat from the more speculative corners of the market.

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Key altcoin performance included:

• Ethereum (ETH): Down 3.1% to $2,425.32
• XRP: Down 4.7%
• Binance Coin (BNB): Down approximately 5%
• Solana (SOL): Down 4.2%
• Dogecoin (DOGE): Down 7.1%

Coinbase CEO Suggests Cycle Bottom Is In

Despite the bearish short-term sentiment, Coinbase Global CEO Brian Armstrong offered a more optimistic long-term view. In a Bloomberg TV interview in Singapore on Thursday, Armstrong stated his personal belief that Bitcoin has already hit its price low for the current cycle.

"Bitcoin moves in these four-year cycles. I personally believe that the bottom for Bitcoin is in for this cycle, and we will see it start to trend back up over the next year or two as we head into the next halving," Armstrong said. He also noted that regulatory clarity for the crypto industry is "continuing to improve," citing the potential passage of a "Clarity Act" in the Senate as a "major milestone."