Bitcoin price falls to $83,570, and rising oil prices put more pressure on risky assets.
Following this decline, Brent crude oil rose above $101 due to the intensifying tensions around the Strait of Hormuz.
Meanwhile, the settlement amount in the crypto market reached $548.97 million, and the leveraged positions of 101,984 traders were closed out.
Within the past 24 hours, Bitcoin fell to $83,570 due to tensions around the Strait of Hormuz, which drove oil prices above $100 per barrel. This sharp decline wiped out approximately $80 billion in market value from the crypto market within just a few hours and triggered nearly $550 million in liquidations, with leveraged long positions bearing most of the losses.
Rising oil prices trigger a sell-off of Bitcoin
As tensions around the Strait of Hormuz escalated, there were instances of panic selling. Iran increased its attacks on oil tankers using drones and missiles, while the UK Maritime Trade Operations Office ( UKMTO ) tracked at least 9 attacks on merchant ships in the first week of October.
After the supply through the Strait of Hormuz was strained, the price of Brent crude oil soared above $101 per barrel.
Higher oil prices also pushed the yield on U.S. 10-year Treasury bonds to 5.25% and boosted the dollar, resulting in very limited liquidity available for risky assets such as Bitcoin.
Encrypted settlement reached $550 million
The sudden drop in Bitcoin prices also dealt a heavy blow to traders using leverage.
According to CoinGlass data, 101,984 traders were liquidated in the past 24 hours, with a total encrypted settlement amount reaching 548.97 million US dollars. Due to price declines forcing leveraged traders to close their positions, long positions accounted for over 88% of the total liquidation amount.
Among them, the settlement amount for Bitcoin positions also exceeded 175 million US dollars.
The current focus on Bitcoin price is at the support level of $83,000.
This round of selling also weakened the technical structure of Bitcoin. Since late September, BTC has failed to break through the $87,000 resistance level for the third time, and subsequently fell below the $84,000 support level.
The next important level is $83,000. If this level can be held, Bitcoin is expected to rebound to $85,500, which is also the 38.2% Fibonacci resistance level.
However, if it falls below $83,000, Bitcoin could test the next major support level near $80,000, which could trigger a new round of leveraged liquidations.
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