Bitcoin is trading near $83,000, down approximately 1.8% over the past 24 hours, as most major cryptocurrencies extend a cooldown from last week. The decline reflects broader pressure on risk assets amid geopolitical developments and monetary policy expectations.
President Trump's rejection of Iran's seven-day plan to end the war and reopen the Strait of Hormuz triggered a rally in oil markets. Brent crude jumped back above $100 a barrel, while the U.S. dollar strengthened and Treasury yields rose. This combination typically pressures Bitcoin and other non-yielding assets.
Monday's trading saw Bitcoin open at $84,455, reach a high of $84,972 in early trading, then decline to $82,580 before settling around $82,933. The pullback marks a modest dip compared to recent gains: Bitcoin rallied from the mid-$70,000s past $80,000 in August and early September, reaching a high near $87,354 before consolidating.
Technical indicators suggest the recent decline may reflect consolidation rather than a reversal. The 50-day moving average remains above the 200-day moving average—a pattern known as a golden cross that has held since the September breakout. The Relative Strength Index reads 58.7, indicating bullish momentum without overbought conditions. The Average Directional Index sits at 43.2, well above the 25 threshold that confirms an established trend.
Most of the top 10 cryptocurrencies declined alongside Bitcoin. BNB fell 1.98% over 24 hours and 4.28% over the week, while total cryptocurrency market capitalization dropped 1.7% to approximately $2.86 trillion. The Crypto Fear and Greed Index remains at 70, in "greed" territory.
Derivatives markets showed elevated activity, with open interest reaching $382.29 billion, up 8.17%, and 24-hour volume spiking 66.28% to $838.18 billion. Liquidations totaled $478 million over 24 hours, with $386.5 million in long positions and $87.95 million in short positions, indicating leveraged buyers absorbed most losses.
Spot Bitcoin exchange-traded funds continued to show net inflows, extending a run that began in mid-September and maintaining institutional demand despite cooling price action.
The week ahead includes several data releases expected to influence market sentiment. The Federal Reserve's preferred inflation gauge arrives Wednesday, followed by the September jobs report on Friday. These reports could inform expectations around the Fed's next rate decision on October 27-28. The CME FedWatch tool currently prices a 64% probability of another quarter-point rate hike at that meeting, down from 75% a few days earlier but still substantial. The Fed raised rates by a quarter point on September 16 in its first hike since 2023, lifting the benchmark rate to 3.75%-4.0%.
