Bitcoin price remained under pressure on Sept. 2 as rising bond yields and renewed U.S.-Iran hostilities tightened global financial conditions.

BTC traded around $76,500–$76,700 during the session after falling below $77,000. The cryptocurrency has retreated roughly 6% from its Aug. 28 high, around $81,300–$81,500, depending on the exchange.

The decline coincided with a global government-bond selloff, higher oil prices, and rising expectations for another Federal Reserve rate hike. Those factors have increased pressure on risk assets even as Bitcoin remains well above its mid-August lows, keeping attention on how macro conditions continue to shape crypto trading rather than on any change to Bitcoin’s underlying supply.

Bitcoin Price Falls as Global Bond Yields Surge

BTC price remains under pressure this week as concerns about the bond market continued its volatility today. In the United States, the 10-year yield rose to 4.8%, its highest level since January this year. This metric is important because it normally determines the activity in the global bond market.

The same surge is happening in other countries. In France, the 10-year yield rose to 4.27%, its highest point since 2008. In Germany, the 10-year yield rose to 3.367%, while in the UK, it moved to 5.22%.

These yields are rising for several reasons, including the ongoing US-Iran war that has pushed crude oil prices higher. Brent, the global benchmark, jumped to a high of $96.88, its highest level since July 24.

The two countries have resumed kinetic operations, and the escalation may continue. As a result, higher oil prices may lead to a sharp jump in inflation, which could push the Federal Reserve to raise interest rates. For Bitcoin traders, that matters because the asset often reacts quickly to shifts in rate expectations and broader liquidity conditions, especially when bond markets are repricing risk across equities and crypto at the same time.

Second, this surge is driven by the ongoing government spending increase. In the United States, public debt has jumped to $40.1 trillion, and this growth will accelerate in the coming months. The same debt expansion is happening in European countries such as Germany and France, where defense spending is accelerating.

Third, government bonds are now competing with corporate bonds issued by some of the top cash-rich companies such as Google and Apple.

In theory, rising bond yields should be bullish for Bitcoin, which has a fixed supply of 21 million coins. Bitcoin has long been viewed as a safe-haven asset by its proponents.

Rising Crude Oil Prices and Inflation

The challenge, however, is that this is happening while the US and Iran continue to fight. The US-Iran war has already pushed inflation higher, with the average gasoline price remaining above $4 a gallon. Diesel is hovering near its all-time high in several countries, including the United States.

As a result, analysts now believe the Federal Reserve may raise interest rates as soon as this month. The CME FedWatch tool shows that the probability of hikes happening this year has jumped to 62.2%. Bitcoin often underperforms the market when these odds are rising.

The rising fears also help explain why American investors are selling their Bitcoin ETFs. These funds saw $236 million in outflows on Tuesday, after adding $216 million a day earlier. Bitcoin ETF outflows mean that demand for Bitcoin is falling. Similarly, futures open interest has remained under pressure in the past few days, which is another sign that traders are staying cautious while macro uncertainty stays elevated.

Bitcoin Price Prediction: Technical Analysis

The daily chart shows that BTC price has retreated in the past few days, moving from a high of $81,365 to the current $76,250. On the positive side, it has remained above the 50-day Exponential Moving Average (EMA).

Bitcoin also remains above the Major S/R Pivot Point of the Murrey Math Lines tool. These technicals suggest that the bullish trend is still intact. It also remains above the important support level of $76,250, where it has resisted moving below since Aug. 23.

Therefore, the coin may rebound in the coming days. If this happens, the next key target to watch will be $81,365. A drop below the support level at $73,000 will invalidate the bullish outlook.