Key facts
- Bitcoin fell as low as $82,776.30 on Tuesday, down 2.76% to $83,178.54.
- Roughly $969 million in crypto positions were liquidated in the past 24 hours.
- Brent crude oil climbed above $101 a barrel, while the 10-year Treasury yield neared 5.34%.
- Traders give 67% odds Bitcoin touches $80,000 in October.
- The four-hour RSI for Bitcoin is 32.2, indicating oversold conditions.
Bitcoin experienced a sharp decline on Tuesday, falling as low as $82,776.30 and trading at $83,178.54, a 2.76% drop on the day. This movement occurred as oil prices surged above $101 a barrel and Treasury yields climbed, impacting risk assets. The sell-off triggered significant liquidations in the crypto market, with approximately $969 million in positions, including $644.47 million in long positions, being forced closed over the past 24 hours.
The broader market also showed weakness, with the S&P 500 down 0.59% and the Nasdaq off 0.71% in morning trading. The rise in oil prices is attributed to ongoing ship attacks in and around the Strait of Hormuz, with the UK Maritime Trade Operations agency reporting at least one incident daily since October 2. Iran's Revolutionary Guard reportedly ordered a tanker to turn around or face an attack. Pricier oil can fuel inflation fears, which in turn push bond yields higher and negatively affect assets like Bitcoin. Technical indicators on Bitcoin's four-hour chart show it is oversold with an RSI of 32.2, though the daily chart still indicates a strong bullish trend with an ADX of 42.8 and a neutral RSI of 52.5. Traders on the prediction market Myriad are pricing in further downside, with 67% odds of Bitcoin touching $80,000 in October.