Bitcoin Falls Below $84,000 as Oil Prices Jump After Iranian Tanker Attacks

Bitcoin briefly slipped below the $84,000 threshold that analysts had identified as a key level for determining whether sellers were gaining control, while oil prices and the U.S. dollar moved higher.

Bitcoin was down about 1.5% at just above $84,200 during Asian trading Wednesday after escalating Iranian attacks on tankers in the Strait of Hormuz pushed oil prices higher. The move also lifted Treasury yields and strengthened the dollar.

Among major cryptocurrencies, DOGE suffered the steepest decline, falling 5% to around 9 cents. HYPE dropped nearly 4% to about $91, while ether declined 3.5% to roughly $2,610. XRP lost nearly 3% to around $1.46. BNB, SOL, ZEC and TRX each fell between 1% and 2.5%, according to CoinDesk data.

Bitcoin had been trading around $86,600 on Tuesday before selling pressure intensified early Wednesday. The cryptocurrency dropped to approximately $83,840, moving below the $84,000 threshold that FxPro said Tuesday would represent “a victory for the bears.”

The Federal Reserve is scheduled to release minutes from its September meeting later Wednesday. The central bank raised interest rates by 25 basis points at that meeting. Recent weakness in employment data has reduced expectations for another hike this month following September’s increase, LVRG Research chief analyst Dan Khus said in an email to CoinDesk.

“The market had already priced in that hike, so traders are now looking at whether the notes sound patient or still point to one more increase before the end of the year,” Khus added.

Oil markets set the tone across Asian trading. Brent crude gained nearly 1% to approximately $101.50 a barrel after Iran intensified attacks on tankers in recent days. The dollar advanced against all Group-of-10 currencies, while the 10-year Treasury yield rose three basis points to 5.31%.

Asian equities also moved lower despite record closing levels for the S&P 500 and Nasdaq 100 on Wall Street. The MSCI Asia Pacific index fell 0.6%, with technology stocks in South Korea and Hong Kong declining and U.S. stock futures giving up their earlier gains.

Bitcoin remains roughly $1,200 above the $83,000 level that FxPro identified as the point at which sellers would be firmly in control. A break below that threshold, according to the firm, could open the way toward $80,000.