Oil Price Surge Triggers Bitcoin Crash Below $83K
On Monday, September 28, US President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz, sending Brent crude prices up 3.2% on the day.
This increase in oil prices led to higher inflation expectations, causing markets to react quickly and price in an October Federal Reserve rate hike, with a 70.3% probability assigned by traders using the CME Fedwatch tool.
The resulting surge in interest rates hit precious metals, with gold falling 3.4% on the day, its lowest level since August 5, at $4,148.69 an ounce.
The decline in gold and silver prices coincided with a sharp drop in Bitcoin's value, which fell below $83,000 before recovering to near $83,250.
Altcoins such as QNT, ONDO, and NEAR experienced drops between 13% and 20%, while roughly $500 million in crypto positions were liquidated over 24 hours, affecting 129,197 traders.