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Bitcoin drops below $83,000 amid middle east tensions
Economy
Bitcoin fell on Thursday, extending its decline as rising oil prices and Treasury yields dampened investor appetite for cryptocurrencies.
The world's largest cryptocurrency dropped 1.56% to $82,914.4 as of 09:13. Earlier in the day, Bitcoin had briefly touched a near three-week low of $82,300.5.
The broader cryptocurrency market also declined in tandem with Bitcoin; the sector proved vulnerable to profit-taking following a prolonged rally in the third quarter.
Fresh buying by the largest corporate holder of Bitcoin—MicroStrategy Inc. (NASDAQ: MSTR)—also failed to halt the cryptocurrency's slide this week.
Middle East Tensions and Rising Yields Weigh on Bitcoin
Oil prices surged on Thursday following reports that the U.S. was considering resuming military action against Iran amidst the ongoing standoff in the Strait of Hormuz.
Iran has also stepped up attacks on vessels in the waterway over the past week, driving shipping activity to its lowest level in more than two months.
The rise in oil prices has heightened concerns that energy-driven inflation will weigh on the global economy and force major central banks—led by the Federal Reserve—to tighten monetary policy. Minutes from the Federal Reserve's September meeting, released overnight, also showed that policymakers are generally maintaining a hawkish stance amid rising inflation.
This, in turn, triggered a sharp rise in Treasury yields; on Wednesday, the yield on benchmark 10-year notes hit a new 24-year high.
High interest rates are negative for cryptocurrencies, as they reduce the appeal of investing in speculative, high-risk assets compared to debt instruments.
Solana and Samsung Announce Crypto Wallet Partnership
On Wednesday evening, Solana announced a partnership with Samsung that will see Samsung Wallet and Samsung Pay add support for stablecoins via the Solana network.
The agreement will allow Samsung Wallet users in the US to conduct cross-border transactions using USDC starting in late October.
This partnership expands Solana's growing list of integrations with stablecoins and traditional financial institutions. Payment giants PayPal and Western Union already use Solana for stablecoin operations.
Nevertheless, the blockchain's native token fell 3.3% on Thursday.
Cryptocurrency Market Today: Altcoins Follow Bitcoin's Decline
Most cryptocurrencies declined in the wake of Bitcoin's ongoing drop.
Ether, the world's second-largest cryptocurrency by market cap, fell 2.2% to $2,558.85, while XRP dropped 5.2%.
Cardano fell 2.4%, and BNB dipped 0.3%.
Among memecoins, Dogecoin lost 3.9% and $TRUMP fell 3%.