Bitcoin extended its decline on Thursday, slipping below the $83,000 mark as rising oil prices and surging U.S. Treasury yields weighed on cryptocurrency investor sentiment. Growing geopolitical uncertainty in the Middle East further reduced demand for riskier assets, adding pressure across the broader crypto market.
The world’s largest cryptocurrency fell 1.56% to $82,914.40 by 02:13 ET (06:13 GMT). Earlier in the session, Bitcoin briefly touched $82,300.50, marking its lowest level in nearly three weeks.
Other major cryptocurrencies followed Bitcoin lower as investors reassessed their exposure to digital assets. The latest selloff also reflected profit-taking following the crypto market’s strong performance during the third quarter.
Meanwhile, fresh Bitcoin purchases by Strategy Inc. (NASDAQ: MSTR), one of the largest corporate holders of the cryptocurrency, failed to reverse the downward momentum.
Middle East Tensions and Rising Treasury Yields Pressure Bitcoin
Escalating geopolitical tensions in the Middle East continued to unsettle global financial markets on Thursday. Oil prices climbed sharply following reports that the United States was considering renewed military action against Iran.
The developments came amid an ongoing standoff in the Strait of Hormuz, a critical shipping route for global energy supplies. Iranian attacks targeting vessels in the region reportedly intensified over the previous week, pushing maritime traffic to its lowest level in more than two months.
Higher oil prices have revived concerns about inflation and its potential impact on the global economy. A prolonged increase in energy costs could force major central banks, particularly the U.S. Federal Reserve, to maintain restrictive monetary policies for longer.
Furthermore, minutes from the Federal Reserve’s September meeting revealed a broadly hawkish stance among policymakers as inflationary pressures remained elevated.
These developments helped drive U.S. Treasury yields higher. The benchmark 10-year Treasury yield reportedly reached a new 24-year high on Wednesday, increasing the appeal of interest-bearing investments.
For Bitcoin and other cryptocurrencies, elevated bond yields represent a significant challenge. Higher returns on relatively safer assets can discourage investors from allocating capital to speculative investments, particularly during periods of economic uncertainty.
Solana Announces Samsung Partnership Despite Crypto Market Weakness
Despite the broader cryptocurrency downturn, Solana attracted attention following the announcement of a new partnership with Samsung on Wednesday evening.
Under the agreement, Samsung Wallet and Samsung Pay will integrate stablecoin functionality through the Solana blockchain. The initiative aims to expand the use of digital currencies for everyday financial transactions.
Beginning in late October, Samsung Wallet users in the United States are expected to gain access to cross-border payments using USD Coin (USDC), a stablecoin pegged to the U.S. dollar.
The partnership marks another step toward connecting blockchain technology with traditional financial services. Solana has already established relationships with major payment companies, including PayPal and Western Union, for stablecoin-related activities.
However, the positive announcement offered limited support for Solana’s native cryptocurrency, SOL, which declined 3.3% on Thursday amid widespread selling pressure.
Ethereum, XRP and Major Altcoins Follow Bitcoin Lower
The broader cryptocurrency market remained under pressure as Bitcoin’s decline coincided with additional selling across major altcoins.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, dropped 2.2% to $2,558.85. XRP recorded a steeper decline of 5.2%, making it one of the weaker performers among major digital assets.
Other leading cryptocurrencies also posted losses. Cardano (ADA) slipped 2.4%, while BNB declined 0.3%.
Memecoins were not spared from the market downturn. Dogecoin (DOGE) fell 3.9%, while the TRUMP token lost approximately 3%.
These widespread declines highlighted the cautious sentiment dominating the cryptocurrency market as investors monitored geopolitical developments, inflation risks and U.S. monetary policy.
Bitcoin Outlook: Inflation and Federal Reserve Policy Remain Key Drivers
Bitcoin’s near-term direction may depend heavily on developments in the Middle East, movements in oil prices and changes in U.S. Treasury yields.
A continued rise in energy costs could strengthen inflation expectations and reduce the likelihood of easier monetary policy from the Federal Reserve. Such an environment would likely remain challenging for Bitcoin and other risk-sensitive assets.
Conversely, easing geopolitical tensions or a retreat in Treasury yields could help stabilize cryptocurrency markets and encourage renewed investor interest.
For now, Bitcoin’s move below $83,000 highlights the cryptocurrency market’s sensitivity to global economic conditions, even as institutional adoption and blockchain partnerships continue to expand.
