Bitcoin slips to 106 million won as Middle East tensions and ‘Rektember’ weigh on markets

Bitcoin slid to the 106 million-won range on Sept. 2 as intensifying military clashes between the United States and Iran cooled investor appetite for risk assets. At 8:10 a.m., the cryptocurrency traded at 106.96 million won on South Korean exchange Bithumb, down 0.89% from 24 hours earlier. CoinMarketCap put the global price at about $77,225.

The weakness extended across major altcoins. Ethereum fell 1.21%, Solana dropped 1.92%, and XRP declined 1.94%.

Geopolitical tensions in the Middle East appeared to weigh on the cryptocurrency market. The United States launched additional strikes against Iran within two days, while Iran carried out retaliatory attacks. Oil prices surged during the escalation. November Brent crude futures rose 4.60% to $94.65 a barrel, and October West Texas Intermediate futures climbed 5.20% to $90.22.

Higher oil prices also strengthened inflation concerns and pushed U.S. Treasury yields higher. The 10-year Treasury yield approached 4.79%, its highest level since January last year. The simultaneous rise in oil prices and market interest rates increased caution toward risk assets.

Seasonal patterns added another concern for crypto investors. CoinDesk said September is known in the cryptocurrency market as “Rektember.” Since 2013, bitcoin’s average September return has been about minus 3%, the weakest among the months, and it has posted a positive return only five times. The bitcoin kimchi premium stood at 0.52%, meaning prices in South Korea were slightly higher than overseas. The crypto fear-and-greed index remained at 69, in the “greed” range, a level associated with increased risk of a market correction.

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September is known in the cryptocurrency market as “Rektember.”