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Bitcoin fell below $77,000 on Tuesday as renewed U.S. strikes in southern Iran shook markets and pushed investors toward safer assets. At the same time, cooling ETF inflows added more pressure on the world’s largest cryptocurrency. Yet the wider macro picture is also feeding a separate debate.
Sovereign debt markets are under clear pressure. The 30-year U.S. Treasury yield has moved above 5.14%. Japan’s 10-year government yield has also climbed to 2.80%. Together, those moves are tightening global liquidity. That pressure is building at a time when the U.S. debt load has already moved above $39 trillion.
Treasury demand is weakening as borrowing costs rise. As a result, some analysts say the environment is becoming harder for governments to finance at the same pace.
Massive AI infrastructure spending is adding another layer of stress. Recent reports suggest that around $725 billion could go into AI infrastructure in 2026 alone. That spending is expected to lift demand for energy, chips, and materials. It also adds structural inflation pressure at a time when markets are already watching yields closely.
Higher interest costs can make government borrowing more difficult. They also raise pressure on the Federal Reserve and increase uncertainty around future rate moves.
For Bitcoin, the setup is more complicated. When bond yields jump, funds often lose money and sell assets, including Bitcoin. Many investors still treat Bitcoin as a risk asset. So during panic selling, it can fall alongside stocks and suffer sharp short-term moves.
Still, some market participants see the pullback as part of a broader liquidity cycle. They argue that the current weakness is not tied only to Bitcoin itself. ETF flows are adding to that pressure. Bitcoin ETFs have seen more than $1 billion in outflows this month alone, which marks the weakest ETF performance since Q1 2026.
That weakness has also pressured institutional valuations and balance sheets. Even so, some traders still view the stress as a possible setup for a Bitcoin supercycle.
Read More: Bitcoin ETF Outflows Drive Investors Toward Prominent Altcoins
The latest drop came after fresh U.S. strikes in southern Iran on Monday. Reports said the strikes targeted missile launch sites and mine-laying boats.
The U.S. described the attacks as defensive. It also said the strikes did not mean a ceasefire with Iran had ended. However, the renewed tension still pushed investors toward the dollar and gold. Equities and cryptocurrencies both came under pressure as a result.
Oil prices also rebounded nearly 2% in Asian trading. That move kept inflation concerns elevated and added to the cautious tone across markets. Bitcoin’s latest decline followed a volatile month for digital assets. Traders have repeatedly shifted between optimism over a U.S.-Iran breakthrough and fear of deeper conflict.
U.S. spot bitcoin ETFs have also recorded net outflows after strong institutional buying earlier in the quarter. That shift has weakened one of Bitcoin’s major support pillars this year.
Bitcoin’s drop below $77,000 came as rising Treasury yields, weaker ETF inflows, and renewed Iran tensions added pressure across markets. Debt stress, inflation worries, and heavy AI spending are also shaping the broader backdrop. Traders are watching whether liquidity support returns or volatility deepens.
