Bitcoin dropped below $83,000 on Thursday as rising Middle East tensions pushed oil prices higher and hawkish Fed minutes drove Treasury yields up, souring risk appetite. Solana separately announced a stablecoin partnership with Samsung, even as its own token fell alongside the broader crypto market.
Bitcoin extended its recent losses on Thursday, falling as oil prices and Treasury yields rallied and kept investor appetite for crypto largely on the back foot. The world's largest cryptocurrency fell 1.56% to $82,914.4 by 02:13 ET. It briefly touched a near three-week low of $82,300.5 earlier in the day. Fresh buying from top corporate holder Strategy Inc did little to slow the decline.
Middle East tensions and yields keep pressure on
Oil prices rose sharply after a report said the United States was considering renewed military action against Iran, amid a prolonged standoff in the Strait of Hormuz. Iran also ramped up its attacks on shipping in the waterway over the past week, bringing traffic to an over two-month low. The surge in oil added to concerns that energy-fueled inflation will pressure global economies and invite more monetary tightening from major central banks, chiefly the Federal Reserve.
Minutes from the Fed's September meeting, released overnight, showed policymakers turning broadly hawkish in the face of rising inflation. That in turn spurred sharp gains in Treasury yields, with the benchmark 10-year yield hitting a fresh 24-year high on Wednesday. High rates bode poorly for crypto, since they diminish the appeal of speculative, risk-heavy assets over debt.
Solana partners with Samsung on stablecoins
Solana announced a partnership with Samsung on Wednesday evening, under which Samsung Wallet and Samsung Pay will support stablecoins through the network. The tie-up will let Samsung Wallet users in the US carry out cross-border transactions using USDC starting in late October.
It adds to Solana's growing roster of stablecoin and traditional-finance integrations — payment giants PayPal and Western Union already use the network for stablecoin activity. Still, Solana's own token fell 3.3% on Thursday.
Altcoins track Bitcoin's losses
Broader crypto prices retreated alongside Bitcoin. Ether fell 2.2% to $2,558.85, while XRP fell 5.2%. Cardano fell 2.4%, and BNB fell 0.3%. Among memecoins, Dogecoin fell 3.9%, while $TRUMP fell 3%.
Source: Investing.com
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