Bitcoin Extends Losses as Geopolitical Tensions Rise
Bitcoin declined on Monday, extending its weekend losses as escalating concerns over the U.S.-Israel conflict with Iran triggered a broader shift away from risk-sensitive assets.
The world’s largest cryptocurrency gave back more of its earlier monthly gains, as rising uncertainty around inflation and interest rates weighed on speculative markets.
Bitcoin slipped 0.7% to $68,652 in early trading.
Iran Conflict Escalation Weighs on Markets
The latest drop in Bitcoin comes amid a wider selloff across global markets, with stocks, currencies, and even gold under pressure.
Over the weekend, President Donald Trump issued a 48-hour ultimatum for Iran to reopen the Strait of Hormuz, warning of potential U.S. strikes on critical energy infrastructure.
In response, Iran threatened to fully shut the key shipping route and target energy and water facilities across the Gulf region. With the conflict now entering its fourth week, there are still no clear signs of de-escalation.
Bitcoin Holds Up Better Than Gold
Despite recent losses, Bitcoin has outperformed gold over the past month. The cryptocurrency has gained roughly 6%, while gold has dropped about 18% during the same period.
Gold faced heavy profit-taking after reaching record highs earlier this year, and investor demand for traditional safe-haven assets has been dampened by concerns over rising inflation and higher interest rates.
Macro and Regulatory Factors Support Bitcoin
Bitcoin has also benefited from improving regulatory developments in the United States, alongside renewed buying interest after its sharp correction from previous highs.
However, on a year-to-date basis, Bitcoin still trails gold, with the cryptocurrency down more than 20%, while gold remains broadly flat.
Altcoins Follow Bitcoin Lower
The broader cryptocurrency market also weakened, reflecting ongoing uncertainty tied to geopolitical risks.
Ethereum fell 2.2% to $2,061, while XRP dropped 1.9% to $1.38. Other major tokens, including BNB, Solana, and Cardano, recorded declines ranging from 0.5% to 2.5%.
Among meme coins, Dogecoin slipped 1.3%, while $TRUMP declined 2.2%.
