Bitcoin broke $83,000 on Monday after again approaching $85,000 over the weekend. BTC fell as low as around $82,700 in some exchanges, erasing further part of its September rally. Nasdaq futures are also falling while oil is rising again. Tensions between Washington and Tehran are coming back to the fore.
In brief
- Bitcoin fell below $83,000 after peaking near $85,000 on Sunday.
- WTI rises to around $93 and Brent exceeds $105.
- Donald Trump has not ruled out new American strikes against Iran.
Bitcoin breaks $83,000 again
The market had already known this mechanism. In early September, bitcoin fell below $77,000 after US strikes against Iran. Oil then exceeded $93. This time, bitcoin arrived with more margin. BTC touched $87,374 on September 21, its best level since January. Again on Sunday, it rose to around $85,100. Monday’s session brought it back below $83,000, with a low around $82,700.
Nearly $4,700 now separates the market from its recent high. The movement also affects other major cryptos. Ether, XRP and Solana are moving in the red, while Nasdaq futures fell around 0.7% at the start of the session.
Donald Trump said on Sunday that he did not rule out new strikes against Iran, while believing that a solution to the conflict remained possible. No new US attacks have been announced at this stage.
Oil puts pressure back on the markets
The oil went back in the other direction. WTI was trading around $93 on Monday and Brent was above $105. Prices rebounded after Trump’s rejection of an Iranian proposal aimed in particular at moving towards a resolution of the conflict and the reopening of the Strait of Hormuz. Tehran and Washington must nevertheless continue their exchanges.
For bitcoin, this return of energy to the debate comes after an already eventful week. On Thursday, BTC had fallen as low as $83,508 after failing above $87,000. Nearly $583 million in crypto positions were then liquidated.
The market had managed to stay above $83,000. This threshold has now given way briefly. Oil adds another difficulty. Sustainably expensive energy could fuel U.S. inflation, push bond yields higher and complicate future Federal Reserve decisions.
US yields are already rising. Bitcoin therefore finds itself between several forces: profit taking after its rally, high rates and the return of geopolitical risk.
Bitcoin returns to a very busy week
The American calendar won’t help much. Several economic indicators are expected this week, including data on inflation, manufacturing activity and employment. Investors will mainly be looking to know whether the Fed will have to further tighten its monetary policy.
The central bank has already raised its rates by 25 basis points. The range is now between 3.75% and 4%. Bitcoin initially took the decision relatively well. A few days later, BTC even rose to $87,374. Since then, the rise in US yields has already started to weaken this rebound.
The numbers tell the story of the change of scenery quite well. $87,374 on September 21. Nearly $85,000 on Sunday. Less than $83,000 on Monday. Bitcoin nevertheless remains significantly above the levels close to $75,000 observed in mid-September. It is therefore not yet a question of a complete erasure of the rally. But the $83,000 for BTC no longer serves as an intact floor. And Iran is coming back at the worst time.
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