By Priya Menon
Bitcoin retreated below the $77,000 mark on Monday, continuing losses from the weekend as a backdrop of rising oil prices and surging government bond yields constricted demand for speculative assets. The largest cryptocurrency traded 1.5% lower at $76,946.6 by 00:54 ET (04:54 GMT), its weakest level since May 1.
Last week Bitcoin briefly rose above $80,000 but could not maintain that advance, and the market moved lower as investors reassessed risk exposures amid growing macroeconomic concerns.
Macro drivers - oil and yields
Global energy prices climbed above $110 per barrel on Monday after reports of drone incidents in the United Arab Emirates and stalled diplomatic efforts over Iran. Those developments raised the prospect of continued disruptions to supply routes and contributed to a wider re-pricing of risk across financial markets.
Higher energy prices helped spark a broad selloff in government bonds, pushing the benchmark U.S. 10-year Treasury yield to its highest level since early 2025. The move in yields has altered the relative appeal of asset classes, making safer fixed-income instruments more attractive compared with high-growth and speculative assets such as cryptocurrencies.
Traders have pared back expectations for Federal Reserve interest rate cuts and currently see rates remaining largely unchanged through most of 2026. Futures markets have also started to price in a greater chance of a rate hike this year. That shift has been cited as a factor that erodes demand for riskier assets.
Geopolitical signals and market sentiment
U.S. President Donald Trump on Sunday warned that "time is ticking" for Iran to reach an agreement with Washington, comments that heightened concerns about a potential deeper regional conflict and the prospect of ongoing disruption to global oil supplies. Those geopolitical worries added to market caution.
Despite ongoing institutional interest and inflows into spot Bitcoin exchange-traded funds, Bitcoin has had difficulty sustaining momentum above $80,000. Market participants were also positioning cautiously ahead of Nvidia's earnings later this week, an event that could shape broader risk sentiment across global financial markets.
Altcoin performance amid risk-off trading
- Ethereum slipped 3% to $2,122.12.
- XRP fell 1.5% to $1.395.
- Solana eased 2%.
- Cardano and Polygon each declined 1.5%.
- Among meme tokens, Dogecoin dropped 2.8%.
The declines among altcoins reflected a broader retreat from higher-risk positions as investors responded to the twin pressures of higher energy prices and climbing sovereign yields.
Implications for markets
The combination of rising oil prices and higher bond yields has weighed on demand for cryptocurrencies and other high-growth assets by increasing the relative attractiveness of fixed-income alternatives. With futures markets shifting to reflect a less accommodative outlook for interest rates, market participants have been reducing exposure to speculative instruments.
Investors continue to monitor geopolitical developments in the Middle East and upcoming corporate earnings events for signals that could either deepen the current risk-off mood or restore some appetite for risk assets.