Bitcoin edged lower on Thursday, trading under pressure as geopolitical tensions between the U.S. and Iran intensified and Treasury yields climbed, reducing appetite for assets that rely on risk-taking. By 01:07 ET (05:07 GMT) the world’s largest cryptocurrency had fallen 0.8% to $78,299.6, while broader cryptocurrency markets were also reporting losses.
Oil surged sharply this week, reinforcing worries that elevated energy costs could keep inflation persistent and influence interest-rate expectations. That dynamic in turn supported rising Treasury yields, which tend to create a more challenging backdrop for speculative and liquidity-sensitive assets.
Geopolitical flashpoint: Iran and the Strait of Hormuz
Attention remained fixed on U.S.-Iran hostilities after both sides engaged in some of the most intense fighting since the conflict began in late February. Iran reported striking 10 ships in and around the Strait of Hormuz, and the U.S. said it responded by sinking five Iranian oil tankers. These developments helped keep Brent crude comfortably above $100 per barrel.
The sustained elevation in oil prices amplified concerns that energy-related inflationary pressure could prompt a more hawkish stance from the Federal Reserve in the months ahead.
Bond market moves and implications for crypto
Treasury yields rallied during the week, with 10-year yields reaching a three-year high after the U.S. Treasury Department announced a larger buyback of longer-dated bonds but markets appeared unimpressed. Higher yields are typically unfavorable for speculative, liquidity-dependent assets such as cryptocurrencies. Historically, Bitcoin has shown relative weakness during periods of Fed rate hikes.
Altcoins and memecoin volatility
Crypto markets broadly tracked Bitcoin’s decline on Thursday. Ether fell 0.7% to $2,478.32, while XRP slid 2.7%. Solana and Cardano each eased by more than 2%, and BNB dropped 3.9%. Among memecoins, Dogecoin lost 4.8% of its value and $TRUMP fell 9.4%.
A separate memecoin tied to the term LAPTOP experienced extreme intraday volatility on Wednesday after launching on the Base network. The token surged to an intraday peak near $222.75 minutes after launch, then plunged about 98% within an hour to trade well below $1 by Thursday.
The current constellation of geopolitics, energy-market strength, and rising bond yields has created a cautious environment for cryptocurrency investors and other holders of high-beta assets.