Bitcoin faced a downturn on Wednesday, dropping 1.2% to $84,288.6 by 02:16 ET (06:16 GMT). The decline came amid rising oil prices and higher Treasury yields, which dampened investor interest in speculative assets like cryptocurrencies. Despite a strong performance in the third quarter, Bitcoin has traded within a narrow range so far in October. Broader crypto markets also saw declines, with regulatory optimism in the U.S. failing to boost risk appetite significantly.
The surge in oil prices this week contributed to the pressure on Bitcoin and other risk-driven markets. Concerns over potential supply disruptions in the Middle East and weather-related threats to U.S. production pushed oil prices higher, raising inflation fears. This scenario has increased expectations of further interest rate hikes by major global central banks, a development that typically weighs on crypto markets.
Government bond yields also spiked, reaching 24-year highs before cooling slightly. However, they remained near their peaks, maintaining downward pressure on crypto markets. Meanwhile, crypto exchange OKX announced a strategic investment from Circle, Qube Research, Ripple, and Standard Chartered at a $25 billion pre-money valuation, though details on the funding amount were not disclosed.
Altcoins mirrored Bitcoin’s decline on Wednesday. Ethereum fell 2.8% to $2,621.66, while other major cryptocurrencies like Solana and Dogecoin also saw losses. Memecoins such as Pepe and Bonk dropped 3.7% and 5.7%, respectively, as the overall crypto sector faced multiple headwinds entering October.