Bitcoin Fluctuates Amid Soaring Yields and Iran Tensions

Bitcoin's price remained stable at around $83,637 on Tuesday as investors remained cautious in the face of soaring Treasury yields and ongoing tensions between the US and Iran.

The cryptocurrency had earlier touched a high of $85k over the weekend but reversed course soon after. Despite this, some positive news emerged with major Wall Street bank Citi expanding its digital asset services to Japan and the UAE, which is seen as a step towards greater adoption by traditional finance.

However, yields continue to be a major concern for crypto markets, with investors pricing in expectations of more interest rate hikes by the Federal Reserve. Key employment data due this week will provide further cues on rates, with any signs of US labor market strength likely to further the case for more hikes.

The report also shed light on Tether's stablecoin USDT, which has emerged as a significant financial lifeline for Iran and a means of bankrolling proxy groups such as Hezbollah. The Senate Democrats' report found that 84% of crypto wallets linked to Iran had transacted in USDT, including to help the Iranian government move funds across its borders and prop up its currency under US sanctions.