The rapid rise of the first cryptocurrency has begun to slow down. Monday proved to be a tough day for digital assets: investors began selling off their positions en masse. This was influenced by several factors at once: the escalating situation surrounding Iran, rising government bond yields, and the Fed’s hawkish stance, which dampened the appetite for risk.
As a result, the price of Bitcoin (BTC) fell by nearly 2.5%, dropping to $82,736. Major altcoins followed the market leader’s lead: Ethereum (ETH) lost about 1.9%, while Solana (SOL) fell by as much as 3.7%.
Why the Market Is Falling: Oil, Bonds, and the Fed
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The main reason for the pressure is the general uncertainty in the global economy, which has affected not only crypto but also the stock markets.
The crisis in the Middle East and oil. After Donald Trump rejected Tehran’s proposal to ensure the safety of shipping in the Strait of Hormuz, oil prices began to rise. This further exacerbates inflationary risks.
The Fed’s hawkish stance. Investors are still trying to adjust to the recent interest rate hike in the U.S. Moreover, there is active market speculation that the central bank may tighten policy even further as early as October.
Competition from bonds. Yields on U.S. Treasury bonds have risen again, exceeding mid-August levels. When yields on traditional risk-free securities rise, it becomes less attractive for funds to hold assets that do not pay a fixed interest rate.
Problems in Congress. The market is also reacting to the failure of a Senate vote on the important Clarity Act. After all, this bill was expected to provide clear rules of the game for the entire industry.
ETFs Are Breaking Records: Institutional Investors Are Still in the Game
Looking at the fundamentals, things within the crypto industry appear much more robust than they did at the beginning of the year.
In the week ending September 25 alone, U.S. spot Bitcoin ETFs saw inflows of approximately $2.4 billion. This marks the strongest weekly inflow since October of last year.
This sharp influx of capital completely offset the summer losses, when over $5 billion flowed out of ETFs. As a result, the balance for all of 2026 is now positive, and the net inflow is approaching the $1 billion mark.
What’s next: consolidation or a reversal?
This pullback occurred immediately after BTC tested levels above $87,000. Since August, when the U.S. Treasury announced an expansion of its securities buyback program, Bitcoin has surged 28%, and from July through September, it gained over 40%. This allowed it to fully recover from the spring decline, and the asset is on track for its best quarterly performance in a long time.
Analysts at major funds, such as DACM and Ericsenz Capital, are in no hurry to panic. In their view, the current decline is simply a technical pullback and profit-taking following a sharp rally. But to start climbing toward annual highs again, the market needs the macroeconomic situation to calm down and the geopolitical situation to become more stable.