Bitcoin fell below $77,000 on Monday, extending weekend losses, as rising global government bond yields and rising oil prices linked to escalating tensions with Iran dampened appetite for riskier assets.

The world’s largest cryptocurrency last traded down 1.5% at $76,946.60 by 3:54 a.m. Saudi Arabia time, its lowest level since May 1.

Bitcoin briefly surpassed the $80,000 level last week, but failed to maintain that momentum.

Bond yields rise amid oil-driven inflation fears

Investors have been reducing their exposure to speculative assets amid growing concerns that rising energy prices could fuel global inflation and keep interest rates high for longer.

Oil prices surpassed $110.00 a barrel on Monday, following reports of drone incidents in the United Arab Emirates and stalled diplomatic efforts related to Iran.

Soaring energy prices triggered a broad sell-off in the government bond market, pushing the benchmark 10-year US Treasury yield to its highest level since early 2025.

Traders have scaled back their expectations of a Federal Reserve interest rate cut and now see rates remaining largely unchanged for most of 2026, while futures markets have begun to reflect increasing likelihood of a rate hike this year.

The rise in returns has hurt demand for cryptocurrencies and other high-growth assets, as it has increased the appeal of safer investments in fixed income.

US President Donald Trump warned on Sunday that time is running out for Iran to reach an agreement with Washington, raising fears of a deeper regional escalation and continued disruption to global oil supply routes.

Bitcoin continues to struggle to maintain its momentum above the $80,000 level, despite continued institutional interest and inflows of funds into Bitcoin exchange-traded funds (ETFs).

Investors were also cautious, awaiting Nvidia's anticipated earnings results later this week, which could affect overall risk sentiment in financial markets.

Cryptocurrency prices today: Altcoins decline amid risk aversion wave

Most alternative cryptocurrencies (altcoins) declined on Monday, affected by a global wave of risk aversion.

Ethereum, the world's second-largest cryptocurrency, lost 3% to reach $2,122.12.

XRP, the world's third-largest cryptocurrency, fell 1.5% to $1.40.

Solana fell by 2%, while Cardano and Polygon each declined by 1.5%.

In the meme currency market, Dogecoin fell by 2.8%.