Bitcoin Tumbles Below $83,000 as Iran Talks Stall and Oil Prices Soar
Bitcoin's price has dipped below $83,000 as tensions rise in Iran and oil prices surge towards $108 per barrel. The cryptocurrency fell by 2% over the past 24 hours to around $82,600, according to CoinDesk data.
Zcash (ZEC) led crypto losses, dropping by 7% to just above $1,540, followed closely by Dogecoin (DOGE), which lost 5% to about 9 cents. SOL and HYPE also suffered significant losses, each falling more than 4%. Ether, BNB, and XRP declined between 2% and 4%, while TRX held steady.
The sharp decline in cryptocurrencies comes as Iran refuses to soften its demands for reopening the Strait of Hormuz, leading to a rise in oil prices. Brent crude is nearing $108 per barrel, causing inflation concerns and sparking bets on further US interest rate hikes.
Analyst Dan Khus at LVRG Research believes that Bitcoin's pullback from last week's highs is a 'risk-off squeeze' following a sharp four-day rally, profit-taking, and a significant liquidation wave. He notes that 10-year Treasury yields are at their highest since 2007, adding to inflation concerns.
Key events this week include Wednesday's PCE reading and Friday's payrolls data, which could push Bitcoin's price back up to the mid-$80,000s or keep it subdued by elevated oil prices and interest rates.