Bitcoin Falls Below $84K While Oil Surges Past $100 on Hormuz Crisis

Bitcoin fell to $83,570 over the past 24 hours as tensions around the Strait of Hormuz pushed oil prices above $100 a barrel. The sharp drop wiped out about $80 billion from the crypto market within hours and triggered nearly $550 million in liquidations, with leveraged long positions taking most of the losses.

Oil Price Jump Triggers Bitcoin Sell-Off

The sell-off came as tensions grew around the Strait of Hormuz. Iran increased drone and missile attacks on oil tankers, while UK Maritime Trade Operations (UKMTO) tracked at least nine attacks on commercial ships during the first week of October.

The attack pushed Brent crude above $101 a barrel, following the supply squeeze at the Strait of Hormuz.

Higher oil prices also pushed U.S. 10-year Treasury yields to 5.25% and strengthened the dollar, leaving very little liquidity for risk assets like Bitcoin.

Crypto Liquidations Reach $550M

The sudden drop in Bitcoin price also hit leveraged traders hard.

According to CoinGlass data, 101,984 traders were liquidated over 24 hours, with total crypto liquidations reaching $548.97 million. Long positions accounted for more than 88% of the liquidations as falling prices forced leveraged traders to close their positions.