Bitcoin drops 0.4% to $86,096

Falling oil prices and Treasury yields also spurred a broader risk-on rally in crypto markets

Bitcoin ticked slightly lower on Tuesday, taking a breather after a big rally that briefly took it above $87,000 to its highest level since the end of January.

The crypto rose sharply through the past week as disappointment over the failure of the Clarity Act to pass the U.S. Senate was offset by the Securities and Exchange Commission (SEC) introducing its own crypto regulation.

Falling oil prices and Treasury yields also spurred a broader risk-on rally in crypto markets. The disclosure of more purchases of Bitcoin by top corporate holder Strategy has also helped the mood.

Bitcoin was last down 0.4% to $86,096.1 by 22:11 GMT.

Strategy on Monday disclosed it had bought back 950 Bitcoin for $75.7 million between September 14 and September 20.

The purchase brought Strategy’s total Bitcoin holdings to 846,000 coins, their highest level since late-June, but still below a record high of 847,363 coins.

Still, the purchase helped spur some confidence in Strategy’s Bitcoin treasury, especially given that the company had sold some of its holdings earlier this year.

Strategy also disclosed it had repurchased 1.77 million shares of its STRC preferred stock in the September 14-20 period for $174.0 million.

The company has been steadily buying back its preferred stock to lower the amount of dividend obligations it has on the equity.

Strategy’s Bitcoin purchases were all purchased through a mix of debt and equity issuances.

Elsewhere, U.S. federal prosecutors are investigating whether Binance violated sanctions on Iran by facilitating certain trading activity on its platform, Bloomberg reported on Monday.

Authorities are also probing whether Binance knowingly allowed the trading.

The world’s biggest crypto exchange had paid a $4.3 billion fine to the U.S. after pleading guilty to breaking U.S. anti-money laundering and sanctions laws.