Bitcoin Falls to $77K as Rising Oil Prices and Bond Yields Weigh on Risk Assets
Bitcoin dropped to around $77,000 on Monday, extending losses from the weekend as investors moved away from riskier assets. Rising global bond yields and surging oil prices, driven by escalating tensions involving Iran, increased concerns over inflation and prolonged higher interest rates.
The world’s largest cryptocurrency was trading 1.5% lower at $77,011 by 09:51 ET, marking its lowest level since May 1. Bitcoin had briefly regained momentum above $80,000 last week but failed to hold those gains.
Rising Oil Prices Fuel Inflation Concerns and Push Bond Yields Higher
Market sentiment weakened as investors worried that higher energy prices could intensify inflation pressures worldwide and delay potential interest rate cuts.
Oil prices surged above $110 per barrel following reports of drone incidents in the United Arab Emirates and continued uncertainty surrounding diplomatic negotiations with Iran.
The increase in oil prices triggered a selloff in government bonds, pushing the benchmark U.S. 10-year Treasury yield to its highest level since early 2025.
As yields climbed, traders reduced expectations for Federal Reserve rate cuts. Markets now increasingly anticipate interest rates remaining elevated through much of 2026, while some futures data suggest growing probabilities of an additional rate hike this year.
Higher Yields Reduce Demand for Bitcoin and Risk Assets
Rising bond yields tend to pressure cryptocurrencies and growth-focused assets because higher returns from fixed-income investments become more attractive to investors.
At the same time, geopolitical uncertainty added to market caution. U.S. President Donald Trump warned on Sunday that “time is ticking” for Iran to reach an agreement with Washington, raising fears of broader regional conflict and disruptions to global energy supply chains.
These concerns contributed to weaker demand for speculative assets, including Bitcoin.
Bitcoin Struggles to Sustain Momentum Above $80,000
Despite continued institutional interest and ongoing inflows into spot Bitcoin exchange-traded funds (ETFs), Bitcoin has struggled to establish a stable position above the $80,000 level.
Investors also remained cautious ahead of upcoming earnings results from Nvidia, which could influence broader market sentiment and appetite for risk.
Strategy Purchases Another $2 Billion Worth of Bitcoin
Strategy, formerly known as MicroStrategy, announced Monday that it purchased approximately 24,869 Bitcoin over the previous week.
The company spent roughly $2.01 billion at an average price of around $80,985 per coin, according to a filing with the Securities and Exchange Commission (SEC).
The acquisition covers the period between May 11 and May 17 and increases Strategy’s total holdings to approximately 843,738 Bitcoin. At current market prices, those holdings are valued at nearly $65 billion.
The move reinforces Strategy’s position as one of the largest corporate Bitcoin holders globally under the leadership of Michael Saylor.
Altcoins Also Decline as Risk-Off Sentiment Intensifies
Most major cryptocurrencies moved lower alongside Bitcoin as investors reduced exposure to higher-risk assets.
- Ethereum fell nearly 3% to $2,133
- XRP declined 2.2% to $1.387
- Solana, Cardano and Polygon dropped between 1.5% and 2.5%
- Dogecoin recorded one of the largest losses among meme cryptocurrencies, falling around 6%
The broader cryptocurrency market remained under pressure amid inflation fears, geopolitical tensions and expectations for higher interest rates.
