Bitcoin Tumbles Below $83,000 Amid Iran Talks Stalemate and Soaring Oil Prices

Bitcoin's price has dropped below $83,000, down 2% over the past 24 hours according to CoinDesk data. This decline comes as Iran talks stall and oil prices climb towards $108 a barrel. The Strait of Hormuz remains closed, with Tehran refusing to soften its demands for reopening.

The increased tension has led to higher inflation expectations, keeping the Federal Reserve on track to raise interest rates again. Ten-year Treasury yields have risen to their highest level since 2007, contributing to the decline in risk assets like Bitcoin and other cryptocurrencies.

Bitcoin's pullback from last week's highs is attributed by some to a 'risk-off squeeze' following a sharp four-day rally. This theory suggests that investors are taking profits after a significant price increase, while others point to the elevated oil prices and inflation expectations as a major factor.

Dan Khus, chief analyst at LVRG Research, notes that key events this week include Wednesday's PCE reading and Friday's payrolls data. These metrics can push Bitcoin's price back up towards the mid-$80,000s or keep it on the backfoot due to higher yields and energy prices.