Bitcoin Slumps 4% Amid Interest-Rate and Oil-Price Risks

Bitcoin's recent rally came to an abrupt end on September 23 as it dropped nearly 4% from its intraday high. The cryptocurrency briefly broke above $87,000 before slipping below $84,000.

The decline was triggered by a reassessment of interest-rate and oil-price risks. Hawkish signals from Federal Reserve officials added to the pressure, with one governor stating that further rate increases may be needed to bring inflation back to 2%.

Other regional Fed presidents also pointed to persistent inflation and energy costs tied to the Middle East conflict. The Iranian President said Iran could not allow the Strait of Hormuz to be freely used while under sanctions, which is a key variable for oil markets.