Bitcoin Slips as Oil and Yields Rise on Iran Tensions

Bitcoin fell further on Monday as traders priced in a firmer macro backdrop after President Donald Trump rejected Iran's ceasefire proposal, pushing oil prices above $100 and lifting Treasury yields.

The move extended last week's retreat in bitcoin and underscored the market's sensitivity to shifts in energy prices, inflation expectations and real yields. The latest leg lower comes ahead of Wednesday's personal consumption expenditures report, the Federal Reserve's preferred inflation gauge, which could shape near-term positioning across risk assets.

Higher oil prices can feed into inflation expectations, while rising yields tend to weigh on non-yielding assets such as bitcoin. That combination has pressured crypto markets even as the broader sentiment backdrop remains constructive, with the Fear and Greed Index at 74, a reading that points to persistent risk appetite.

For bitcoin, the immediate focus is whether the pullback remains a macro-driven correction or develops into a deeper de-risking phase. Traders are likely to watch the PCE release, Treasury market moves and any further escalation in Middle East tensions for clues on whether the recent weakness broadens beyond crypto.