Bitcoin fell 1.8% to $62,853.4 by 00:26 ET (04:26 GMT) on Monday, extending losses from the weekend. The world\u2019s largest cryptocurrency remained under pressure as markets reacted to a fresh round of attacks traded between the U.S. and Iran and conflicting statements over the status of the Strait of Hormuz.<\/p>\n
Both sides claimed control of the key waterway, with the U.S. stating that the strait remained open, while Iran said the crossing was largely closed. The uncertainty helped drive oil prices sharply higher, intensifying concerns about energy-driven inflation and its potential impact on interest rates in the U.S. and other major economies.<\/p>\n
Higher interest rates have been a significant headwind for Bitcoin and other digital assets since the onset of the U.S.-Iran war, as they tend to reduce the appeal of non-yielding, speculative assets. Bitcoin continued to trade at levels about 50% below an October record high, reflecting broadly negative sentiment toward the crypto sector.<\/p>\n
Broader cryptocurrency prices largely retreated on Monday, with the market lacking positive catalysts. Data from SoSoValue showed that Bitcoin exchange-traded funds recorded eight consecutive weeks of capital outflows, indicating waning institutional appetite for the asset class.<\/p>\n
Investor preference has increasingly shifted toward artificial intelligence stocks, further sapping demand for cryptocurrencies. At the same time, U.S. regulatory developments that had previously supported the sector have lost momentum. Progress on the closely watched Clarity Act in Congress has stalled, leaving the regulatory outlook uncertain.<\/p>\n
Among major altcoins, Ether, the world\u2019s second-largest cryptocurrency, fell 1.1% to $1,783.46, while XRP declined 1.7%. Solana, Cardano, and BNB dropped between 0.2% and 3%. In the memecoin segment, Dogecoin fell 1.2%, and $TRUMP declined 2.2%.<\/p>\n
Why did Bitcoin fall on Monday?<\/strong> How did geopolitical tensions affect broader crypto prices?<\/strong> What is happening with Bitcoin ETFs?<\/strong> How did other major cryptocurrencies perform?<\/strong>
Bitcoin fell 1.8% to $62,853.4 as renewed hostilities between the U.S. and Iran increased risk aversion and reduced demand for speculative, non-yielding assets such as cryptocurrencies.<\/p>\n
Rising geopolitical tensions lifted oil prices and fueled concerns over energy-driven inflation and higher interest rates, which weighed on the entire crypto market and kept prices near their weakest levels of the year.<\/p>\n
According to SoSoValue data, Bitcoin exchange-traded funds have seen eight consecutive weeks of capital outflows, signaling reduced institutional interest in Bitcoin.<\/p>\n
Ether fell 1.1% to $1,783.46, XRP declined 1.7%, Solana, Cardano, and BNB dropped between 0.2% and 3%, while memecoins Dogecoin and $TRUMP fell 1.2% and 2.2%, respectively.<\/p>\n