Bitcoin fell to $82,734 on Wednesday, marking its lowest price traded in October, as geopolitical tensions and rising bond yields weighed on cryptocurrency markets.
The decline coincided with a broader market pullback as US stock indexes retreated from all-time highs. The S&P 500 traded down 0.6% to 7,773 points, while US bond yields reached new 24-year highs following statements from an Iranian official regarding the Strait of Hormuz.
The 10-year and 30-year US Treasury yields climbed to 5.36% and 5.73%, respectively. These moves reflected market concerns about inflation and government debt loads, according to market participants.
Oil prices also rose on the day. Brent crude reached $102 per barrel while WTI crude hit $91, after an adviser to Iran's Revolutionary Guards' Commander warned of a clampdown on traffic through the Strait of Hormuz that the Iranian government had deemed illegal.
Bitcoin struggled to maintain momentum, failing to break through resistance near $87,000. Onchain analytics firm CryptoQuant reported that Bitcoin open interest had declined by nearly 10% since September 22, falling from approximately $28.8 billion to $26.0 billion, suggesting reduced risk appetite among futures traders despite subdued spot market demand.
The breakdown of support at Bitcoin's 21-day simple moving average at $83,850 prompted analysts to monitor $69,500 as a significant level representing the average cost basis for short-term Bitcoin holders.
