Bitcoin stabilized below the $77,000 mark on Tuesday after four straight sessions of losses. Investors are monitoring developments in the Iran conflict and the impact of rising oil prices on inflation and U.S. interest-rate expectations.
The world's largest cryptocurrency last traded 0.1% lower at $76,818.9 by 01:33 ET (05:33 GMT), after slipping in the last four sessions.
Bitcoin had climbed above $82,000 last week on resilient ETF inflows.
Market sentiment remained fragile even as U.S. President Donald Trump said planned attacks on Iran had been postponed while diplomatic efforts continued.
However, uncertainty over the Strait of Hormuz and threats to global crude supply kept investors defensive.
Oil prices stayed elevated above $100 a barrel after rising sharply in recent weeks on fears of supply disruptions linked to the Middle East conflict.
The rise in oil prices has fueled concerns that global inflation could remain sticky for longer. This could force central banks to keep interest rates elevated, hurting appetite for speculative assets such as cryptocurrencies.
U.S. Treasury yields remained high on Tuesday. The benchmark 10-year yield hovered around 4.44% after a sharp climb in recent sessions as investors priced in inflation risks from higher energy costs.
Analysts said Bitcoin continued to trade largely in line with broader risk sentiment. Geopolitical tensions overshadowed optimism around institutional demand and spot ETF inflows.
IG analysts noted that Bitcoin trades within a complex macro environment where ETF inflows and institutional accumulation remain supportive, while geopolitical tensions and inflation concerns generate sharp swings in price action.
Broader financial markets also remained uneasy. Asian equities struggled for direction while bond markets stayed under pressure amid fears the Iran conflict could evolve into a prolonged inflationary shock.
Most altcoins traded in tight ranges on Tuesday. Ethereum rose 0.4% to $2,125.60. XRP fell 0.7% to $1.38. Solana eased 0.4% and Polygon declined 1%, while Cardano edged up 0.3%. Among meme tokens, Dogecoin slipped 1.6%.
