Key facts
- Bitcoin was trading near $83,000, down 1.8% over 24 hours.
- President Trump rejected Iran's seven-day plan to end hostilities.
- Brent crude oil rose above $100 a barrel.
- Treasury yields and the dollar also increased.
- The total crypto market capitalization was around $2.86 trillion, down 1.7%.
Bitcoin experienced a pullback, trading near $83,000 and down approximately 1.8% over the past 24 hours, as broader market forces influenced its price. The cryptocurrency's rally, which began in August, faced headwinds from geopolitical developments and anticipated economic data.
President Donald Trump's decision to reject Iran's proposal for a seven-day ceasefire and the reopening of the Strait of Hormuz led to a surge in Brent crude oil prices, pushing them back above $100 a barrel. This geopolitical event also contributed to a stronger dollar and rising Treasury yields, creating a challenging environment for non-yielding assets like Bitcoin and gold.
Most of the top 10 cryptocurrencies followed Bitcoin's downward trend, with BNB down 1.98% over 24 hours and 4.28% over the week. Hyperliquid's HYPE saw a steeper decline. However, Zcash and XRP showed weekly gains, though both were down on the day.
Technically, Bitcoin's chart still shows bullish signs, with the 50-day moving average above the 200-day moving average (a golden cross) and a Relative Strength Index (RSI) of 58.7, indicating bullish momentum without being overbought. The Average Directional Index (ADX) at 43.2 confirms a strong trend. Despite these indicators, Monday's pullback is viewed as digestion rather than a reversal for now.
Market participants are also looking ahead to key economic data releases, including Tuesday's JOLTS job openings, Wednesday's Personal Consumption Expenditures (PCE) inflation report, and Friday's September jobs report. These figures will influence future Federal Reserve policy decisions. CME FedWatch currently prices a roughly 64% chance of another quarter-point rate hike at the Fed's October 27-28 meeting.