With soaring oil prices and rising borrowing costs, the price of Bitcoin, along with other assets, tumbled significantly.

The largest cryptocurrency by market value traded at $83,062 in New York on Wednesday morning, falling nearly 4% within 24 hours; it once dropped to $82,823 during the session. Last week, the coin approached $87,086.

Coinglass data shows that within the past 24 hours, nearly $178 million of long positions betting on a rise in Bitcoin prices have been closed out.

During this sharp decline in Bitcoin, mortgage loan rates in the United States have risen for the seventh consecutive week, reaching their highest level in nearly three years.

Rising borrowing costs, stemming from soaring oil prices, have sparked concerns in the market about the Federal Reserve possibly raising interest rates again. The US central bank just raised rates last month.

Bitcoin has performed well in environments of low interest rates in the past; at least in the short term, it will also be affected when the Federal Reserve hints at raising borrowing costs.

After Iran increased attacks on vessels in the Strait of Hormuz, the price of Brent crude oil briefly exceeded $102.

On Wednesday, the prices of various assets were impacted, with gold, silver, and stocks also falling due to this news.

Rising oil prices are exacerbating what many American politicians refer to as a "affordability crisis." The United States will hold elections on November 3rd, and soaring inflation is one of the hottest topics at the moment.

Despite Bitcoin's decline on Wednesday, the asset just recorded its best quarter performance in several years. Analysts say that after breaking above the 365-day moving average, Bitcoin has now entered a bull market.

This largest digital asset ignored the Federal Reserve's interest rate hikes last month, as well as efforts by lawmakers to block the milestone crypto legislation Clarity Act.