Bitcoin falls toward $83K despite $3B ETF inflows: what’s going wrong?

The decline accelerated on Sept. 24, leaving Bitcoin largely confined to the $83,000 to $85,000 area before Monday's move towards the lower end of that range.

Oil prices moved higher after tensions between the US and Iran deteriorated over the weekend.

Brent crude rose roughly 1.5% to 1.6% towards $106 per barrel after US President Donald Trump rejected Iran's latest proposal concerning the reopening of the Strait of Hormuz.

Higher oil prices have kept inflation risks in focus because energy costs can feed into transport and production expenses.

The Strait of Hormuz remains particularly important to energy markets, with roughly 20% of global oil supply passing through the waterway.

At the same time, US Treasury yields remained elevated alongside oil, with the 10 year yield trading around 5.2% during the Asian session and the 30 year yield near 5.52%.

Higher yields have tightened financial conditions while raising the return available on government debt.

Federal Reserve officials have maintained a hawkish stance as inflation remains above target.

St. Louis Fed President Alberto Musalem said last week that more rate increases would likely be needed to contain inflation, with the Fed's preferred inflation measure having risen to 3.7% in July.