Bitcoin Drops Below $84,000 as Oil Surges on Geopolitical Tensions

Bitcoin prices dipped below $84,000 on Wednesday morning in Asia, as tensions in the Strait of Hormuz drove oil prices higher and lifted Treasury yields and the dollar. The world’s largest cryptocurrency fell about 1.5%, trading just above $84,200. Other major cryptocurrencies also saw declines, with DOGE leading the losses, sliding 5% to about 9 cents, while HYPE dropped nearly 4% to about $91, and Ether lost 3.5% to about $2,610. XRP, BNB, SOL, ZEC, and TRX each fell between 1% and 2.5%, according to data from CoinDesk.

The drop in Bitcoin came after it traded near $86,600 on Tuesday before a sharp decline early Wednesday took it as low as about $83,840, dipping below the $84,000 level that FxPro had earlier identified as a key support level. The firm noted that breaking below $83,000 could signal stronger selling pressure, potentially pushing prices toward $80,000.

Investors were also focused on the Federal Reserve’s September meeting minutes, set to be released later on Wednesday. Weaker jobs data had reduced expectations for another rate hike this month following the September quarter-point increase. Analysts are now watching for signals on whether the Fed remains hawkish or adopts a more patient stance before year-end.

Oil prices set the tone in Asian markets, with Brent crude rising almost 1% to about $101.50 per barrel amid escalating Iranian attacks on tankers in the Strait of Hormuz. The dollar strengthened against all other Group-of-10 currencies, and the 10-year Treasury yield climbed three basis points to 5.31%. Asian stocks declined even after record closes for the S&P 500 and Nasdaq 100 on Wall Street, with MSCI’s Asia Pacific gauge dropping 0.6% as tech shares in South Korea and Hong Kong fell.