Bitcoin continued to lose momentum and cool off on Monday following a rapid rally in recent weeks,
as a new wave of macroeconomic uncertainty weighed on risk assets, Bloomberg reports.
The leading cryptocurrency fell nearly 2.5% to $82,736 at the time of writing.
Other digital assets also declined. Ether, the second-largest cryptocurrency, dropped as much as 1.9%, while Solana fell 3.7%.
Cryptocurrencies are facing pressure from the macroeconomic backdrop. Crypto assets fell alongside stocks and bonds after Trump rejected Iran's latest proposal to resume shipping through the Strait of Hormuz. Meanwhile, oil prices continued to rise. Additionally, markets are still digesting the Federal Reserve's decision to raise interest rates earlier this month; traders are beginning to price in a significant probability of another hike in October.
The pullback follows a rally early last week, during which Bitcoin briefly climbed above $87,000, reaching its highest level since January. Institutional demand also surged: Bitcoin exchange-traded funds (ETFs) saw their largest net weekly inflows since the token hit a record high above $126,000 last October.
Nevertheless, some investors view Bitcoin's recent weakness as a pause following a strong run-up rather than the end of the positive trend.
"I don't think the rally lacks conviction just because of the weakness seen in recent days. That was to be expected at some point, given the recent strength," said Richard Galvin, executive chairman of crypto investment firm DACM. US spot Bitcoin ETFs attracted approximately $2.4 billion during the week ending September 25. This marks the largest weekly inflow since the week ending October 10, when inflows exceeded $2.7 billion. That earlier surge occurred shortly before a sell-off that persisted through much of 2026.
The recent spike was sufficient to push the ETFs into positive territory for the year. Through the end of July, the funds had seen net outflows exceeding $5 billion, but the trend subsequently reversed; net inflows for 2026 are now approaching $1 billion.
Bitcoin has been rallying sharply over the past month. Since August 19—when the US Treasury announced an expansion of its long-term bond buyback program—the coin has appreciated by approximately 28%. It is currently on track for its best quarterly performance since the fourth quarter of 2024, when the re-election of Donald Trump—who campaigned on a pro-crypto agenda—helped drive a 47% gain.
This represents a significant recovery following the first half of the year, although the price remains well below its October peak. From July through September, BTC has risen more than 40%, recouping the 14% loss sustained in the previous quarter.
Bitcoin has remained relatively resilient amidst recent events viewed as potentially unfavorable for the industry. In addition to the Federal Reserve’s rate hike, the US Senate recently failed to advance the "Clarity Act," a cryptocurrency bill eagerly anticipated by crypto firms hoping for clearer domestic regulations.
Furthermore, Bitcoin is becoming increasingly correlated with broader trends in the government bond market and liquidity conditions. Treasury yields are currently higher than they were prior to the August 19 buyback announcement. Higher yields can diminish the appeal of non-yielding assets like Bitcoin, particularly when investors anticipate that central banks will maintain high interest rates.
"For Bitcoin to break through its 2026 highs, a favorable macroeconomic backdrop will likely be required," says Damien Loh, Chief Investment Officer at Ericsenz Capital.