Investing.com-- Bitcoin fell on Monday, extending losses from over the weekend as heightened concerns over an escalation in the U.S.-Israel war on Iran sparked a broad move out of risk-driven assets.
The world's largest cryptocurrency reversed more gains from earlier this month as speculative assets were battered by growing uncertainty over how the Iran war will impact global inflation and interest rates.
Bitcoin fell 0.7% to $68,652.0 by 01:34 ET (05:34 GMT).
Losses in Bitcoin came amid a broader downturn in risk-driven assets, with stocks, currencies, and gold also falling on Monday.
U.S. President Donald Trump said on Saturday that Iran had 48 hours to reopen the Strait of Hormuz or face U.S. strikes on critical energy infrastructure.
Tehran responded by threatening to completely close the strait, and that it would also attack key energy and water infrastructure in Gulf countries as retaliation for U.S. aggression.
The war showed few signs of de-escalation, with reports early-Monday showing continued hostilities in the Middle East as the conflict entered its fourth consecutive week.
Bitcoin fares better than gold amid Iran, rate tensions
Bitcoin performed relatively better than gold and other precious metals in the past month, with bullion seeing limited bids despite heightened global geopolitical tensions.
Bitcoin was trading up about 6% in the past month, while spot gold was down about 18% as of Monday.
The yellow metal was slammed with a wave of profit-taking after it hit a record high in late-January, while a broader unwinding in long positions also weighed.
Gold saw limited bids even with the onset of the Iran war, as safe haven for the yellow metal was largely overshadowed by fears of higher global inflation and interest rates.
Bitcoin, on the other hand, benefited from some improving U.S. regulatory developments in the past month. Bargain buyers also stepped in last month after Bitcoin wiped out as much as 50% from an October record high.
But Bitcoin still lagged gold in year-to-date performance, with gold trading flat, while Bitcoin was nursing an over 20% decline.
Crypto price today: altcoins weak as Iran tensions persist
Broader crypto prices largely dithered with Bitcoin on Monday, as uncertainty over Iran spurred little buying.
World no.2 crypto Ether fell 2.2% to $2,061.77, while XRP fell 1.9% to $1.3853.
BNB, Solana, and Cardano fell between 0.5% and 2.5%, while among memecoins, Dogecoin fell 1.3% and $TRUMP lost 2.2%.