Macro
Bitcoin Price Drops Below $81,000 Amid Rising Oil Prices and Fed Hawkishness
Bitcoin's price has recently dipped below the $81,000 mark, trading as low as $80,922 on Thursday morning in New York. This decline comes as oil prices continue to rise, driven by geopolitical tensions and hawkish statements from the Federal Reserve.
Over the past day, Bitcoin has lost nearly 3% of its value, contributing to a 4% decrease over the last week. Despite a strong performance in September, where Bitcoin approached the $90,000 threshold, the start of October has been challenging for investors.
The surge in Brent crude oil prices, now at $104.87, has been attributed to renewed attacks on tankers in the Strait of Hormuz and comments from U.S. President Trump regarding negotiations with Iran. Higher oil prices are raising inflation concerns, which could prompt the Federal Reserve to increase interest rates further. Fed Governor Christopher Waller indicated that additional rate hikes may be necessary to combat inflation, although he noted some flexibility in the pace of increases.
The current economic environment, characterized by rising oil prices and elevated Treasury yields, poses challenges for risk assets like Bitcoin. As of October 8, the 10-year Treasury yield reached 5.305%, contributing to a higher cost of capital for investors.
Despite the recent downturn, some analysts suggest that Bitcoin may still be in a bull market, having spent much of 2026 in a bear market following record highs in October 2025. However, the cryptocurrency is currently more than 30% below its all-time high of $126,080.
Latest Update on Bitcoin Market
Bitcoin slid toward $80,000 Thursday afternoon, dropping more than 4% over the past 24 hours, nearing the level it reclaimed on September 20. The decline wiped more than $7,000 from its price in roughly two days, coinciding with steep losses across major tokens. Ethereum fell more than 6% to around $2,400, while XRP declined roughly 6% to $1.32. Solana dropped nearly 9% to around $106.
The selloff triggered more than $1.1 billion in liquidations over 24 hours, with long positions accounting for approximately $1.05 billion. This indicates that traders betting on further gains absorbed most of the losses.
Brent crude reached around $106 a barrel Thursday, remaining above $100 since late September, amid ongoing tensions related to the Iran war. Treasury yields have climbed to their highest levels in 24 years, with the Treasury term premium reaching its highest level since 2014.
CoinMarketCap’s Fear and Greed Index fell to 53, placing it in neutral territory after remaining in greed territory since late August. Bitcoin was down roughly 3% for October, despite the month’s historically strong performance, which averages more than 18% gains since 2013.
FAQ
Why has Bitcoin's price dropped below $81,000?
Bitcoin's price has dipped below $81,000 due to rising oil prices driven by geopolitical tensions and hawkish statements from the Federal Reserve, which have raised inflation concerns.
What are the current factors affecting Bitcoin's value?
The current factors affecting Bitcoin's value include rising Brent crude oil prices, increased Treasury yields, and potential interest rate hikes by the Federal Reserve to combat inflation.
How much has Bitcoin's value decreased recently?
Over the past day, Bitcoin has lost nearly 3% of its value, contributing to a 4% decrease over the last week.
What is the significance of the 10-year Treasury yield reaching 5.305%?
The 10-year Treasury yield reaching 5.305% indicates a higher cost of capital for investors, which poses challenges for risk assets like Bitcoin.
Is Bitcoin still considered to be in a bull market despite the recent downturn?
Some analysts suggest that Bitcoin may still be in a bull market, despite the recent downturn, as it has spent much of 2026 in a bear market following record highs in October 2025.