Bitcoin Slumps Below $84,000 Amid Soaring Bond Yields and Middle East Tensions

Bitcoin's price dropped below $84,000 on Monday as investors took profits after two consecutive weeks of gains. The world's largest cryptocurrency fell 1.7% to around $83,418 by 9:25 a.m. ET.

The decline came amid surging government bond yields and continued uncertainty over the U.S.-Iran conflict. The benchmark 10-year U.S. Treasury yield climbed above 5%, reaching levels last seen in 2007.

Higher bond yields make safer interest-paying assets more attractive compared with speculative assets such as cryptocurrencies. Bitcoin does not pay interest simply for being held, making it less appealing to investors when government bonds offer increasingly attractive yields.