Bitcoin fell 1.7% to $83,061.4 on Monday, extending weekend losses as Treasury yields surged past levels last seen in 2007 and a U.S.-Iran peace deal remained out of reach. The pullback snapped two weeks of gains and dragged Ether, XRP, Solana, Cardano, BNB and Dogecoin lower alongside it, while gold, silver and Chinese stocks also sold off.
Bitcoin fell 1.7% to $83,061.4 by 02:30 ET on Monday, extending losses from over the weekend, as surging Treasury yields and a stalled U.S.-Iran peace process dented appetite for risk-driven markets. The drop snapped two straight weeks of gains that had been fueled by optimism over favorable U.S. regulations.
Treasury yields jump to 2007 levels
Government bond yields rose across the globe on Monday as markets bet on more interest rate hikes to stave off rising inflation. The 10-year U.S. Treasury yield jumped past 5%, a level last seen in 2007, while yields in Japan blew past 30-year peaks.
The spike was driven chiefly by growing conviction that the Federal Reserve and the Bank of Japan will remain hawkish after both hiked rates in September and signaled more moves over concerns about sticky inflation. Higher rates weigh on speculative, non-yielding assets like crypto, because they limit market liquidity and make government debt look safer.
Iran standoff keeps energy costs in focus
Rising energy costs stemming from the U.S.-Iran conflict have been a major driver of inflation this year, and the standoff remained a pain point for markets on Monday, with the U.S. and Iran still at an impasse over the Strait of Hormuz. President Donald Trump did not rule out further military action against Iran in a weekend interview, after earlier rejecting a peace deal from Tehran.
Negotiations between both sides continued, but there was little sign of progress toward a concrete deal. Continued hostilities between Yemen's Iran-backed Houthis and Saudi Arabia also underpinned oil, keeping fears of energy-driven inflation high.
Selloff spreads to gold, silver and Chinese stocks
The pressure wasn't limited to crypto. More than $550 billion was wiped off gold and silver in three hours on Monday. Chinese stocks lost more than ¥1.21 trillion ($181 billion) as the Shanghai index fell 1.75% and the CSI 300 dropped to its lowest level in 12 months. According to Al Jazeera, Iran remains prepared for "an apocalyptic war" if attacked.
Altcoins track Bitcoin lower
Broader crypto prices fell alongside Bitcoin after two weeks of gains, with the sector facing some profit-taking. Ether fell 2% to $2,652.25, while XRP fell 2.7%, Solana fell 2.1% and Cardano fell 3.5%. BNB fell 1.3%. Among memecoins, Dogecoin fell 3.8%.
Despite Monday's pullback, Bitcoin had posted its highest weekly close in eight months above $84,000 the prior week, leaving it up 45% from its June low.
Sources: Investing.com, Coinpedia Fintech News
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