Bitcoin fell below $83,000 on Wednesday, reaching its lowest level of October as rising oil prices, surging bond yields and renewed geopolitical tensions weighed on global markets.
Bitcoin (BTC) dropped to $82,734 on Bitstamp during the Wall Street session. The decline came as U.S. stocks pulled back from record highs and investors reacted to escalating concerns surrounding Iran and the Strait of Hormuz.
Bitcoin Falls to October Low
Bitcoin slipped below the $83,000 level after struggling to maintain upward momentum.
BTC/USD reached $82,734, marking its lowest price so far this month. The decline also pushed Bitcoin below an important short-term technical support level.
At the same time, U.S. government bond yields surged to their highest levels in 24 years, adding further pressure to risk assets.
Iran Tensions Push Oil Prices Higher
Energy markets moved sharply higher following renewed uncertainty over oil shipments through the Strait of Hormuz.
Brent crude climbed to around $102 per barrel, while West Texas Intermediate crude reached approximately $91.
The move followed comments from an adviser linked to Iran’s Revolutionary Guards, who warned that authorities could restrict traffic considered illegal through the strategically important waterway.
Concerns over potential disruptions to global oil supplies quickly increased inflation fears across financial markets.
U.S. Bond Yields Reach 24-Year Highs
The oil price surge contributed to another sharp rise in U.S. Treasury yields.
The benchmark 10-year Treasury yield climbed to around 5.36%, while the 30-year yield reached approximately 5.73%. Both moved to levels not seen in roughly 24 years.
Higher energy prices can increase inflation expectations, potentially keeping interest rates elevated for longer.
Goldman Sachs strategist Muhammad Qubbaj said continued strength in energy prices could maintain upward pressure on long-term interest rates, especially while institutional demand for bonds remains weak.
Stock Markets Pull Back From Record Highs
U.S. equities also moved lower after reaching fresh all-time highs during the previous session.
The S&P 500 fell around 0.6% to approximately 7,773 points.
The decline reflected a broader risk-off move as traders reacted to rising bond yields, higher oil prices and geopolitical uncertainty.
Bitcoin often trades alongside other risk-sensitive assets during periods of market stress, making the broader selloff another headwind for BTC.
Bitcoin Demand Remains Weak
Beyond macroeconomic pressure, analysts are also highlighting weaker demand in both Bitcoin spot and derivatives markets.
Bitcoin has repeatedly struggled to break through selling pressure around the $87,000 level.
According to CryptoQuant, Bitcoin open interest has fallen by nearly 10% since September 22, declining from around $28.8 billion to approximately $26 billion.
The drop suggests that futures traders have shown limited willingness to increase their exposure while spot-market demand remains relatively subdued.
Bitcoin Loses Key Technical Support
The latest decline also pushed Bitcoin below its 21-day simple moving average.
That indicator stood near $83,850 and had previously acted as an important short-term support level.
A sustained break below this area could keep Bitcoin under pressure unless buyers return and push BTC back above nearby resistance.
On longer time frames, CryptoQuant highlighted the $69,500 region as another important level to monitor.
That price represents the approximate average cost basis of Bitcoin short-term holders, generally defined as investors who have held BTC for up to six months.
For now, Bitcoin remains caught between weak market demand and growing macroeconomic uncertainty as traders monitor oil prices, bond yields and developments surrounding Iran.
