Bitcoin fell sharply during Asian trading Wednesday, briefly breaking below $84,000, a level analysts had identified as a key threshold for confirming stronger selling pressure. Oil prices and the U.S. dollar also advanced.
The largest cryptocurrency was down about 1.5% at just above $84,200 after escalating Iranian attacks on tankers traveling through the Strait of Hormuz pushed crude prices higher. The move in oil was accompanied by gains in Treasury yields and the dollar.
DOGE was the biggest decliner among major cryptocurrencies, dropping 5% to roughly 9 cents. HYPE declined nearly 4% to about $91, while ether fell 3.5% to approximately $2,610. XRP dropped nearly 3% to around $1.46. BNB, SOL, ZEC and TRX were each lower by between 1% and 2.5%, according to CoinDesk data.
Bitcoin was trading near $86,600 on Tuesday before losing ground in early Wednesday trading. It fell as low as about $83,840, moving beneath the $84,000 mark that FxPro had described a day earlier as “a victory for the bears.”
Investors are also awaiting the release of minutes from the Federal Reserve’s September meeting later Wednesday. The Fed raised rates by 25 basis points at that meeting. Recent weaker employment figures have made another rate increase this month appear less likely, following September’s quarter-point hike, according to Dan Khus, chief analyst at LVRG Research.
“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 said in an email to CoinDesk.
Oil emerged as a key driver for Asian markets. Brent crude climbed nearly 1% to around $101.50 a barrel after Iran increased attacks on tankers in recent days. The dollar strengthened against all Group-of-10 currencies, while the 10-year Treasury yield rose three basis points to 5.31%.
Asian stocks also declined despite the S&P 500 and Nasdaq 100 closing at record highs on Wall Street. The MSCI Asia Pacific index fell 0.6% as technology shares in South Korea and Hong Kong weakened, while U.S. stock futures surrendered their earlier gains.
Bitcoin is now only about $1,200 above the $83,000 level that FxPro considers the confirmation point for seller control. A sustained move below that threshold could put $80,000 in focus, according to the firm.
