The world’s largest cryptocurrency fell 1.8% to $62,848.5 as of 10:12 a.m. Chisinau time.
The broader cryptocurrency market also declined on Monday, extending the losses seen over the weekend and remaining near its lowest levels of the year.
Bitcoin and the crypto market are under pressure due to tensions between the U.S. and Iran
Bitcoin came under pressure from heightened risk aversion after the U.S. and Iran exchanged new blows over the weekend, with both sides sending mixed signals regarding the situation in the Strait of Hormuz.
Both sides claimed control over the Strait of Hormuz: the U.S. insisted that the waterway remained open, while Iran asserted that the strait was largely closed.
Oil prices surged following these events, heightening concerns about inflation driven by rising energy prices and its impact on interest rates in the U.S. and other major economies.
This factor has put significant pressure on the cryptocurrency market since the start of the war between the U.S. and Iran, as higher interest rates generally reduce the appeal of investing in speculative, non-yielding assets, which include cryptocurrencies.
Bitcoin continued to trade about 50% below its October record high, while overall sentiment in the crypto market remained negative. Growing investor interest in stocks of artificial intelligence companies also reduced demand for cryptocurrencies.
According to SoSoValue, Bitcoin exchange-traded funds (ETFs) recorded capital outflows for eight consecutive weeks, indicating a significant decline in institutional interest in cryptocurrencies.
Today’s Cryptocurrency Prices: Altcoins Fall in the Wake of Bitcoin
The broader cryptocurrency market as a whole declined on Monday amid a lack of positive signals for the sector. Regulatory developments in the U.S., which had previously served as a source of support for the crypto market, also remained uncertain: progress on the closely watched Clarity Act through Congress has stalled.
Ether, the world’s second-largest cryptocurrency, fell 1.1% to $1,783.46, while XRP dropped 1.7%.
Solana, Cardano, and BNB lost between 0.2% and 3%.
Among meme coins, Dogecoin fell 1.2%, and $TRUMP dropped 2.2%.
