Bitcoin Falls to $83,000 as Gold Plunges 3% on Fresh Oil Price Surge

Bitcoin (CRYPTO: BTC) is down 1.5% Monday morning as gold, measured by SPDR Gold Shares (NASDAQ:GLD), slid 3% against the backdrop of a renewed surge in oil prices.

Brent crude climbed toward $108 a barrel after Tehran refused to soften its demands for reopening the Strait of Hormuz. 

Meanwhile, President Donald Trump sent mixed signals on further talks. Treasuries then sold off across the curve, with the five-year yield rising seven basis points to 5.06% as traders added to rate-hike bets ahead of Wednesday’s PCE inflation reading. Nasdaq 100 futures dropped 1%.

LVRG Research chief analyst Dan Khus blamed a pileup of pressures for Bitcoin’s slide. “Bitcoin’s pullback from last week’s highs is more likely a risk-off squeeze following a sharp four-day rally, profit-taking, and a $500 million-plus liquidation wave,” Khus told CoinDesk.

He added that Wednesday’s PCE and Friday’s payrolls will decide whether Bitcoin reclaims the mid-$80,000s.

Why Gold Is Falling Too

Gold posted its biggest drop in a month, and silver fell alongside it. Four forces are weighing on both metals:

• Fed hike bets — CME FedWatch shows a roughly 70% chance of an October hike, and metals pay no interest
• Bond yields — the 10-year Treasury yield hit 5.20%
• Stronger dollar — the US Dollar Index reached 101.39, a two-month high