Bitcoin Sinks Below $78,000 Amid Iran Conflict and High Treasury Yields

Bitcoin's price fell to $77,180.6 on Thursday, down 2.6% from the previous day, as rising tensions between the United States and Iran weighed on riskier assets.

The conflict pushed oil prices higher, with Brent crude staying above $100 a barrel, which can contribute to inflation by increasing energy costs that affect transportation and production.

Investors are concerned about persistent inflation keeping interest rates higher for longer, creating a difficult environment for Bitcoin and other risk-driven assets.

Higher Treasury yields added pressure on the cryptocurrency market, with the 10-year Treasury yield reaching a three-year high after the U.S. Treasury Department announced a larger buyback of longer-dated bonds.

Despite the decline, Coinbase CEO Brian Armstrong remains optimistic about Bitcoin's prospects, believing it has already reached the bottom of its current cycle and is poised to trend higher over the next one to two years as the market moves toward the next halving event.