Bitcoin fell on Monday, extending losses from the weekend as concerns mounted over an escalating US-Israeli war on Iran, triggering a broad sell-off of risk-driven assets.
The world's largest cryptocurrency reversed further gains from earlier this month as speculative assets were hurt by growing uncertainty about how the Iranian war will affect global inflation and interest rates.
Bitcoin fell 0.7% to $68,652.00 by 09:34 (Saudi Arabia time).
Escalating Iranian war in focus after Trump issues 48-hour deadline regarding Hormuz
Bitcoin's losses came amid a broader sell-off in risk-driven assets, with stocks, currencies and gold also falling on Monday.
US President Donald Trump said on Saturday that Iran has 48 hours to reopen the Strait of Hormuz or face US strikes on vital energy infrastructure.
Tehran responded by threatening to completely close the strait, and that it would also attack key energy and water infrastructure in the Gulf states as retaliation for American aggression.
The war showed few signs of abating, with reports early Monday indicating continued hostilities in the Middle East as the conflict entered its fourth consecutive week.
Bitcoin outperforms gold amid Iran tensions and interest rates
Bitcoin performed relatively better than gold and other precious metals last month, with bullion seeing limited buying interest despite escalating global geopolitical tensions.
Bitcoin rose by about 6% last month, while spot gold fell by about 18% through Monday.
The yellow metal was hit by a wave of profit-taking after reaching a record high in late January, while a wider unwinding of long positions also had an impact.
Gold saw limited buying interest even at the start of the Iran war, as concerns about rising global inflation and interest rates largely overshadowed the safe haven of the yellow metal.
On the other hand, Bitcoin benefited from some improved US regulatory developments last month. Bargain buyers also stepped in last month after Bitcoin erased as much as 50% from its record high in October.
But Bitcoin is still lagging behind gold in performance year to date, with gold trading steadily while Bitcoin is down more than 20%.
Cryptocurrency prices today: Altcoins are weak amid ongoing Iranian tensions.
Prices for the broader cryptocurrency market fluctuated considerably with Bitcoin on Monday, as uncertainty over Iran dampened buying.
The world's second-largest cryptocurrency, Ether, fell 2.2% to $2,061.77, while XRP dropped 1.9% to $1.3853.
BNB, Solana and Cardano fell between 0.5% and 2.5%, while among the meme coins, Dogecoin fell by 1.3% and $TRUMP lost 2.2%.
