Crypto Prices Plummet as Trump Rejects Iranian Proposal

US President Donald Trump's rejection of an Iranian proposal tied to the Strait of Hormuz sent shockwaves through global markets, causing a significant drop in cryptocurrency prices. Bitcoin (BTC) slipped below $83,000 after briefly topping $85,000, while Ethereum (ETH) struggled near $2,650 and XRP stayed below $1.50.

The total crypto market cap fell 1.85% to around $2.84 trillion, according to CoinMarketCap. This dip interrupted the September rebound, leaving investors wondering what's next for the cryptocurrency market.

Analysts point to a possible link between higher oil prices and bond yields, which can make riskier assets like crypto less appealing. The 10-year Treasury yield has moved above 5% since the conflict began, contributing to the decline in cryptocurrency prices.