Bitcoin Slips to $77,100 as US-Iran Tensions and Surging Bond Yields Spook Investors

Bitcoin fell on Thursday, retreating alongside other major cryptocurrencies as escalating military conflict between the U.S. and Iran and a surge in U.S. Treasury yields soured investor sentiment. The leading digital asset dropped 2.6% to $77,180.6 as of 9:45 AM ET, according to data from Investing.com, reflecting a broader risk-off mood in global markets.

Dual Headwinds Pressure Crypto

Investor anxiety was fueled by reports of the most intense military exchanges this week since the U.S.-Iran conflict began in late February. Iran claimed responsibility for attacks on 10 vessels, while the U.S. reported sinking five Iranian oil tankers in response. The heightened geopolitical risk has kept Brent crude oil prices firmly above $100 per barrel.

Sustained high oil prices are stoking fears of persistent energy-driven inflation, leading markets to anticipate a continued hawkish stance from the U.S. Federal Reserve. This sentiment has pushed U.S. Treasury yields sharply higher, with the 10-year note hitting a three-year high. Higher interest rates increase the opportunity cost of holding non-yielding, speculative assets like Bitcoin, which has historically underperformed during Fed rate-hike cycles.

Broader Market Sell-Off

The downturn was not isolated to Bitcoin, as most alternative cryptocurrencies, or altcoins, followed suit. The sell-off impacted the entire digital asset ecosystem, with major tokens posting significant losses.

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• Ether (ETH), the second-largest cryptocurrency, fell 3.1% to $2,425.32.
• XRP declined by 4.7%.
• Other major altcoins including Solana (SOL) and Cardano (ADA) were down 4.2% and 3.6%, respectively.
• Binance Coin (BNB) recorded a loss of approximately 5%.

Industry Commentary

Despite the short-term price pressure, some industry leaders remain optimistic about Bitcoin's long-term trajectory. In a Bloomberg TV interview in Singapore on Thursday, Coinbase Global CEO Brian Armstrong stated his belief that Bitcoin has already found its bottom for the current cycle.

"Bitcoin has these four-year cycles. I think the bottom is in for this cycle, personally, and we will see it start to trend back up over the next year or two as we get to the next halving," Armstrong said. He also noted that regulatory clarity for the crypto industry in the U.S. is "continuing to get better," citing progress on legislation in the Senate.