Bitcoin slipped below $81,000 on Thursday, reaching its lowest level since September 21, as renewed concerns over possible US-Iran military action pushed oil prices higher and increased pressure on risk assets.
BTC fell to around $81,000 on Bitstamp, putting the cryptocurrency at risk of losing the key $82,500 support level. Traders are closely watching the level as a potential indicator of Bitcoin’s next market direction.
Oil prices climbed amid reports that the US could be preparing for fresh strikes against Iran. WTI crude reached $93.20 per barrel, its highest level since October 2, while Brent crude climbed to $105.88.
Markets also remained concerned about inflation and interest rates. The US 30-year Treasury yield briefly reached 5.73%, its highest level in 24 years, before easing to around 5.65%.
Federal Reserve Governor Christopher Waller said further interest-rate hikes may be needed if economic data continues to support tighter monetary policy. Market expectations for a 25-basis-point rate hike at the Fed’s December meeting also increased, with the probability rising above 70%.
Bitcoin’s decline below $82,000 also contributed to wider crypto-market liquidations. Long-position liquidations stood at around $430 million, adding further selling pressure to the market.
