Bitcoin fell sharply in Asian trading on Monday, dropping as much as 2.4% to $62,600, as surging oil prices triggered a broad retreat in risk appetite.
The decline in the digital asset coincided with a spike in crude benchmarks following reports that the United States had launched fresh military attacks on Iran.
Bitcoin had already slipped below recent support levels, testing the $58,000 mark, before the latest escalation in US-Iran tensions accelerated selling pressure.
The cross-asset reaction underscores how geopolitical shocks in the energy sector are rapidly translating into macroeconomic anxiety.
Investors are increasingly worried that sustained higher oil prices could reignite inflationary pressures, complicating the outlook for central bank policy and dampening the appeal of speculative assets like cryptocurrency.
This development marks a continuation of the volatility seen in digital assets over the past week.
Bitcoin had already slipped below recent support levels, testing the $58,000 mark, before the latest escalation in US-Iran tensions accelerated selling pressure.