Bitcoin Falls Below $83,000 Amid Hormuz Tensions and Rising Bond Yields
Bitcoin fell below $83,000 to $82,734 on Wednesday amid rising oil prices, surging US bond yields, and renewed tensions surrounding the Strait of Hormuz.
Bitcoin dropped below the $83,000 threshold on Wednesday, reaching $82,734—its lowest price recorded so far in October. The decline came amid renewed tensions surrounding Iran and the Strait of Hormuz, alongside rising oil prices and surging US Treasury yields. This combination increases pressure on assets considered riskier, including cryptocurrencies.
Conflict in the Strait of Hormuz is affecting markets primarily through oil. Brent crude oil prices rose to about $102 a barrel, while WTI crude reached approximately $91. Concurrently, the yield on the 10-year US Treasury note climbed to 5.36%, and the 30-year bond yield reached 5.73%, levels not seen for about 24 years. Rising yields tend to make conservative investments more attractive, diminishing appetite for volatile assets like Bitcoin.
Contradicting messages regarding the Strait of Hormuz are also adding to uncertainty. US Secretary of State Marco Rubio stated that Iran has lost total control over the strait and claimed oil flows have returned almost to pre-war levels. Meanwhile, an advisor to the commander of the Iranian Revolutionary Guard claimed the Iranian blockade remains active. This gap between versions complicates the ability of international markets to assess energy supply developments, keeping marine shipping insurance premiums high in the region.
Simultaneously, demand for Bitcoin itself has noticeably weakened. This indicates that traders are willing to take fewer risks in a market already grappling with geopolitical uncertainty.
