Bitcoin fell 2.6% to $77,180.6 on Thursday as an escalating U.S.-Iran conflict and rising Treasury yields pushed investors away from risk assets. Ether, XRP, Solana and other major tokens dropped in tandem, while Coinbase CEO Brian Armstrong said he believes Bitcoin has already bottomed for this cycle.
Bitcoin fell 2.6% to $77,180.6 by 09:45 ET on Thursday, extending its slide as a worsening U.S.-Iran conflict and elevated Treasury yields weighed on appetite for risk-driven assets.
Iran conflict and yields pressure Bitcoin
Iran said it struck 10 ships in and around the Strait of Hormuz. The U.S. said it retaliated by sinking five Iranian oil tankers. The clashes marked some of the worst fighting between the two countries since the war began in late February.
The escalation pushed Brent crude well above the $100 a barrel level, adding to concerns that energy-driven inflation will keep the Federal Reserve on a hawkish path. As a result, 10-year Treasury yields hit a three-year high this week after a bigger Treasury buyback of longer-dated bonds fell flat.
Higher rates bode poorly for speculative, liquidity-dependent assets like crypto, and Bitcoin has historically underperformed during Fed rate-hike cycles.
Coinbase CEO says Bitcoin has bottomed
Coinbase Global CEO Brian Armstrong said Thursday he believes Bitcoin has already bottomed in its current cycle. According to Bloomberg Television: "we've seen the bottom of the Bitcoin price in this cycle".
Armstrong also said crypto regulatory clarity has been improving, pointing to the Clarity Act as right on the finish line in the Senate. He added that regulators are ready to act either way, since the SEC and CFTC have said they would publish clear rules if the bill does not pass.
Altcoins and memecoins slide
Broader crypto prices fell in tandem with Bitcoin on Thursday. Ether fell 3.1% to $2,425.32. XRP slid 4.7%. Solana and Cardano fell 4.2% and 3.6%, respectively. BNB shed about 5%.
Among memecoins, Dogecoin dipped 7.1%. Separately, Hunter Biden's LAPTOP token lost about 98% of its value within an hour of its launch on Base on Wednesday, sliding from an intraday peak of $222.75 to trade well below $1 by Thursday.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
