On the Chain: Bitcoin falls below US$83,000 as bond yields and oil trigger crypto sell-off

Bitcoin has fallen below US$83,000 as surging US Treasury yields, stronger oil prices and a rising US dollar drive investors away from riskier assets.

The world's largest cryptocurrency was trading around US$82,802 at the latest check, down about 1.5% on the session after falling as low as US$82,783.

Bitcoin had traded as high as US$84,332 earlier in the session and was above US$86,000 only days ago, highlighting the speed of the latest reversal.

The decline follows repeated failures to break through resistance around US$86,500-US$87,000 and has pushed Bitcoin into an increasingly important support area.

Liquidations accelerate

The downturn has been amplified by forced selling across leveraged cryptocurrency positions.

Around US$394 million of crypto positions were reportedly liquidated within a single hour during the sharpest part of the decline as Bitcoin lost support around US$83,000.

Leveraged traders can be automatically forced out of positions when prices move against them, adding further selling pressure and accelerating market declines.

The move comes after Bitcoin gained more than 30% over the previous three months, leaving the market vulnerable to profit-taking after its strong September-quarter rally.