Bitcoin Tumbles Below $79K Amid US-Iran Tensions and Rising Bond Yields

Bitcoin's price dropped below $79,000 on Thursday as investors grew cautious due to heightened US-Iran tensions and rising bond yields.

The conflict between the two nations led to a surge in oil prices, with Brent crude reaching its highest point since July at over $101 per barrel. WTI crude also increased above $96, fueling inflation worries that may impact interest rate policy expectations.

Additionally, the 10-year US Treasury yield reached a three-year high after an unsuccessful attempt to buy back longer-maturity bonds. Elevated yields typically make risk assets like Bitcoin less appealing to investors.

The Japanese yen strengthened against the dollar, reaching its highest level since February and exposing market participants with short positions in the currency to significant risk. Charu Chanana, chief investment strategist at Saxo, warned that a swift unwinding of these positions could negatively impact liquidity across multiple asset classes, including crypto.