Bitcoin fell on Thursday, extending its sharp overnight losses, as rising oil prices and Treasury bond yields fueled renewed concerns about rising interest rates.
Cryptocurrency prices also declined in general, as a decrease in risk appetite led to a wave of profit-taking following the sector's exceptional gains during September.
Bitcoin fell 2.90% to $83,378.70 by 8:25 AM.
However, the world's largest cryptocurrency still holds strong gains since the beginning of September, as investors welcome more positive regulatory stances from the US government.
Bitcoin falls as Treasury yields hit 19-year highs and oil rebounds
Bitcoin's overnight losses coincided with a broader risk-driven decline in markets, amid a sharp rise in Treasury bond yields.
The US 10-year benchmark jumped above 5% again, hitting its highest level since 2007, driven by strong US Purchasing Managers' Index data and hawkish comments from a Federal Reserve governor, reinforcing expectations of further interest rate hikes in the coming months.
The Federal Reserve raised interest rates by 25 basis points last week, reaffirming its commitment to its 2% annual inflation target, which the market interpreted as signaling further rate hikes.
Bond yields rose across the developed world on expectations of higher interest rates. Japanese 10-year bond yields reached their highest level in 30 years on Thursday.
High interest rates weaken the appeal of high-risk, speculative investments like Bitcoin, since debt instruments typically provide better returns in such environments.
Adding to concerns about rising interest rates was an overnight rebound in oil prices, as expectations of progress in US-Iranian diplomacy appeared exaggerated.
The rise in oil prices was driven by a strongly worded speech delivered by Iranian President Masoud Pezeshkian before the United Nations General Assembly in New York City on Wednesday, in which he attacked the United States and President Donald Trump.
Cryptocurrency prices today: Altcoins decline in Bitcoin's wake
Cryptocurrency prices continued their decline on Thursday, extending overnight losses as a drop in risk appetite triggered a wave of profit-taking in the sector.
Optimism surrounding further US regulatory support—particularly following the Securities and Exchange Commission's (SEC) announcement of a five-year exemption for blockchain-based equity offerings—sparked exceptional gains in altcoins. This decision helped markets largely overcome the failure of the Transparency Act to pass Congress.
Ether, the world's second-largest cryptocurrency, fell 2.80% to $2,656.83, while XRP declined 8.10% to $1.47.
Solana fell by 3.40%, Cardano slipped by 7.10%, while BNB declined by 2.00%.
The meme cryptocurrencies Dogecoin and $TRUMP fell by 7.40% and 10.90% respectively.
