Bitcoin fell in Wednesday Asian trading, dropping below a level analysts had identified as the point where sellers would start taking control, as oil, the U.S. dollar and Treasury yields all moved higher.
According to CoinDesk, bitcoin was down about 1.5% to just above $84,200 after escalating Iranian attacks on tankers in the Strait of Hormuz lifted oil prices and added pressure across broader markets.
Major tokens moved lower across the board
CoinDesk data showed DOGE leading losses among major cryptocurrencies, falling 5% to about $0.09. HYPE dropped nearly 4% to around $91, ether lost 3.5% to about $2,610, and XRP fell nearly 3% to roughly $1.46.
BNB, SOL, ZEC and TRX also declined, each losing between 1% and 2.5%.
Bitcoin briefly fell to around $83,840
Bitcoin had traded near $86,600 on Tuesday before a sharp drop early Wednesday pushed it as low as about $83,840. That move took it below the $84,000 threshold that FxPro said on Tuesday would signal “a victory for the bears.”
FxPro also said that if bitcoin breaks below $83,000 on a sustained basis, the market could quickly head toward $80,000. At the time cited in the report, bitcoin was about $1,200 above that $83,000 level.
Fed minutes were in focus
Markets were also waiting for minutes from the Federal Reserve’s September meeting, due later Wednesday. At that meeting, the Fed raised rates by a quarter point.
Dan Khus, chief analyst at LVRG Research, said in an email to CoinDesk that weaker jobs data made “another rate increase this month look less likely after September’s quarter-point hike.”
He added: “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.”
Oil, the dollar and Treasury yields all rose
Oil set the tone in Asian hours. Brent crude rose almost 1% to about $101.50 a barrel after Iran stepped up attacks on tankers in recent days.
The dollar strengthened against every other Group-of-10 currency, while the 10-year U.S. Treasury yield climbed three basis points to 5.31%.
Asian equities also turned lower
Asian stocks fell even after the S&P 500 and Nasdaq 100 closed at record highs on Wall Street. MSCI’s Asia Pacific gauge lost 0.6% as technology shares in South Korea and Hong Kong weakened, and U.S. stock futures gave back earlier gains.